Share buybacks beat 2019 total with $600m in Q1

A total of 65 SGX primary-listed stocks conducted buybacks in March.

Total share buyback consideration hit $600m in Q1 for Singapore Exchange (SGX) primary-listed stocks, eclipsing the $590m total in 2019, according to data from SGX.

In March, share buybacks surged to $502m, which represents a 55-month high since the $544m buyback consideration reported in August 2015.

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A total of 65 primary-listed stocks conducted buybacks in Singapore in March, soaring from 16 stocks in January to 17 stocks in February. DBS Group recorded the biggest total buyback consideration of $388.38m, followed by OCBC ($34.66m) and UOB ($19.95m).

Motivations for share buybacks could include employee compensation plans or long- term capital management. Buybacks can pick up amidst market declines caused by broader macroeconomic developments.

The Straits Times Index (STI) fell 17.6% to 2,481.23 in March. The STI 30-day volatility also climbed to 51.7% on 31 March, the highest since December 2008. This brought the STI’s price decline to 23.0% for Q1, with the FTSE ASEAN All-Share Index dropping 27.2%.