In the first five months of 2025, 63 primary-listed companies on the Singapore Exchange (SGX) have engaged in share buybacks totalling $930m, a significant rise from the $505m recorded during the same period in 2024. This surge represents the highest level of buybacks for the first five months of a year since 2020, driven largely by market volatility in April.
The month of May alone saw S$176m in buybacks, with United Overseas Bank (UOB) leading the charge, purchasing $144m worth of shares at an average price of $35.329. DBS Group Holdings and Olam Group followed, with buybacks of $18m and $6m respectively. UOB has been particularly active, buying back $253m of its shares over the past five months.
Secondary-listed companies have also been active, with Hongkong Land repurchasing $55m (US$55m) of its shares under a $200m (US$200m) programme set to conclude by the end of the year. ESR REIT and Stoneweg European REIT have continued their buyback activities, aiming to enhance financial metrics such as Return on Equity (ROE) and Net Asset Value (NAV).
The buyback trend is largely attributed to companies seeking to manage excess capital and improve financial ratios. According to ACRA, buybacks can enhance Earnings per Share (EPS) and ROE, whilst capitalising on perceived undervaluation of shares.
The Straits Times Index (STI) banks have been particularly prominent, accounting for 77% of the total buybacks, as they continue to return surplus capital through these programmes. DBS Group Holdings launched a $3m buyback initiative in 2024, with UOB and Oversea-Chinese Banking Corporation following suit in early 2025.
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