Share buybacks by primary-listed companies

Jul 12–Jul 18, 2024*

*Via market acquisitions
Source: SGX

Institutions were net sellers of Singapore stocks over the five trading sessions through to July 18, with S$98 million of net institutional outflow. The five sessions also saw nine primary-listed companies conducted buybacks with a total consideration of S$4.5 million. 

United Overseas Bank was the only STI stock that filed buybacks for the period, with 112,000 shares acquired at an average price of S$33.01 per share over four sessions spanning July 12 to 17. United Overseas Bank will report its 1HFY24 financials before the August 1 market open.

KSH Holdings acquired 2,624,200 of its own shares at an average cost of S$0.19 for each share. With this transaction, the total proportion of shares bought back under the current mandate now stands at 1.47 per cent of the issued shares (not counting treasury shares) as of the date when the share buyback resolution was passed. 

The construction, property development and property investment group reports most of its revenue to its construction business which maintains an order book of S$379.0 million as of March 31. Projects span both the private and public sector which include residential, institutional and infrastructure developments.

Leading the net institutional outflow over the five sessions were DBS Group Holdings, Singapore Airlines, United Overseas Bank, Jardine Cycle & Carriage, Sembcorp Industries, Wilmar International, Frasers Centrepoint Trust, Oversea-Chinese Banking Corporation, Genting Singapore and CapitaLand Ascott Trust. The 10 stocks saw combined net institutional outflow of S$296 million. 

Meanwhile, Singapore Telecommunications, Mapletree Industrial Trust, Thai Beverage, SATS, Mapletree Pan Asia Commercial Trust, Yangzijiang Shipbuilding Holdings, Seatrium, CapitaLand Ascendas REIT, CapitaLand Integrated Commercial Trust and Venture Corporation led the net institutional inflow. The 10 stocks saw combined net institutional inflow of S$204 million. 

The five trading sessions saw 60 director interests and substantial shareholdings filed for 20 primary-listed stocks. Directors or CEOs filed 10 acquisitions, and no disposals, while substantial shareholders filed three acquisitions and 10 disposals. 

Directors that filed acquisitions included Accrelist Executive Chairman and Managing Director Terence Tea Yeok Kian, Keong Hong Holdings Executive Director Xu Quanqiang and Union Steel Holdings Executive Director Ang Yew Chye. Mr Ow Chio Kiat also added to his Singapore Shipping Corporation and Stamford Land Corporation interests. 

Retail Investors' Net Positioning Amidst Early July Market Gains

With S$570 million of net selling in the space of 13 sessions, Retail investors have reversed half of the S$1.08 billion of net buying in 1H24. 

The STI increased 5 per cent in the same 13 trading sessions through to July 17, with the 20 stocks that booked the most net retail selling all gaining over the 13 sessions and averaging 8 per cent returns. These 20 stocks saw S$738 million in net retail selling over the period. 

Singapore Telecommunications

Singapore Telecommunications (Singtel) booked the most net retail selling over the 13 sessions, with S$170 million of net retail selling as the share price gained 10 per cent. 

The overall volume weighted average price (VWAP) of the stock for the 13 sessions was S$2.90. 

The stock booked S$43 million in net retail buying for the first two months of 2024, coinciding with the overall VWAP at S$2.38, followed by S$297 million of net retail selling over the remaining four months of 1H24, that coincided with the VWAP at S$2.46. 

Singtel has also seen a significant pick up in trading turnover this year, which on a day-to-day basis has been 60 per cent higher than seen over 2023. 

While focused on the three pivotal areas of connectivity, digital services, and digital infrastructure, Singtel has continued to focus on enhancing operational efficiency, which includes the consolidation of consumer and enterprise units in Singapore and Australia. 

Its capital recycling strategy has also unlocked S$8 billion to fuel its strategic shift and ST28 Growth strategy. 

Recently, The Business Times reported that Singtel is set to gain approximately S$400 million from its associate Intouch Holdings' merger with Gulf Energy Development, leading to the creation of a major new public company in Thailand. 

Singtel will exchange its Intouch stake for an estimated 9 per cent share in this new entity, which Singtel anticipates being ranked among Thailand's largest and most traded companies. 

The stocks that saw the next highest amount of net retail selling in early July included United Overseas Bank, DBS Group Holdings, Oversea-Chinese Banking Corp and SATS, with price gains varying from 4 per cent for DBS Group Holdings to 15 per cent for SATS. 

Large-cap stocks typically lead in net selling and buying activities due to their higher market values. 

Dyna-Mac Holdings

Among the 20 stocks with the most net retail selling over the 13 sessions, the company that saw the most net retail selling relative to its market value was Dyna-Mac Holdings, which saw S$8.8 million of net retail selling over the 13 sessions. 

This amounted to 1.6 per cent of the stock’s S$533 million market value as of July 17. 

The share price surged 23 per cent over the 13 sessions, which resulted in a VWAP of S$0.48. 

In January, the stock booked S$9.2 million of net retail buying, with the overall VWAP at S$0.28, followed by S$28.2 million of net retail selling over the remainder of 1H24, that coincided with the VWAP at S$0.35.  

Dyna-Mac Holdings has also ranked just outside the 40 most traded Singapore stocks by turnover this year, with its trading turnover close to double the levels seen in 2023 and 2022. 

It has also ranked among the 15 stocks that have booked the most net institutional buying in the 2024 year to July 17, with OCBC Investment Research maintaining a Buy Rating on the stock and increasing its fair value estimate on the stock to S$0.52 on July 8.  

This followed on from the fabricator of offshore topside modules and facilities providing guidance of a significant improvement in 1H24 net profit, with its financials scheduled be released after the August 6 market close. 

OCBC Research predicts higher net profit in 1H24 from more revenue and productivity and sees strong growth potential in the present upcycle with increased fabrication capacity. 

Jardine Cycle & Carriage

While the financial and real estate sectors, which includes banks and REITs, made up 12 of the 20 stocks that saw the most net selling by retail investors in early July, the Consumer and Industrials Sectors made up 12 of the 20 stocks that saw the most net buying by retail investors over the 13 sessions.  

Jardine Cycle & Carriage saw the most net retail buying over the first 13 sessions of July, at S$46 million, while the share price declined 5 per cent. 

In 1Q24 Jardine Cycle & Carriage booked S$102 million of net retail buying, followed by S$19 million of net selling by retail investors in 2Q24, and return of net retail buying in early July. 

This coincided with the overall VWAP for Jardine Cycle and Carriage moving from S$25.97 in 1Q24 up to S$26.60 in 2Q24 and moving back to S$25.92 for the first 13 sessions of July. 

Jardine Cycle & Carriage maintain strategic investments that include Astra and Truong Hai Group Corporation, which have a strong presence in the automotive market. 

Additionally, it has interests in the Refrigeration Electrical Engineering Corporation and Siam City Cement, further diversifying its portfolio across the South East Asia economy. 

Recent Net Retail Flows in the S-REIT Sector

As mentioned above, over the 13 trading sessions, retail investors net sold shares totaling S$570 million. 

Despite this significant outflow, from an individual stock perspective, the distribution of selling versus buying activity among retail investors was nearly even, with the ratio of stocks 11 to 10, for stocks net sold to net bought.

In the S-REIT Sector specifically, there was net selling of S$105 million, with a closely matched number of 20 trusts net sold against 19 trusts net bought by retail investors, indicating a balanced trading dynamic. 

The 20 trusts that were net sold averaged 10 per cent returns over the 13 sessions, while the 19 trusts that were net bought averaged 4 per cent returns. 

Among the 10 best-performing trusts of the S-REIT Sector over the 13 sessions, seven registered net selling by retail, with the three exceptions being Keppel Pacific Oak REIT, United Hampshire REIT and Lendlease Global Commercial REIT. 

These three REITs maintained net buying by retail investors over the 13 sessions, as seen in 1H24.

Inside Insights is a weekly column on The Business Times, read the original version.

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