Singapore’s stock market has witnessed a vigorous start to 2025 with primary-listed companies engaging in substantial share buybacks. Over the first five months, companies have collectively repurchased millions of shares, with the top five buybacks totalling significant investments.
Among the leaders, Sembcorp Industries acquired 15 million shares for a consideration of S$29.5m. Other notable buybacks include purchases of 6.58 million shares for S$277.2m and 7.26 million shares for S$253m. These strategic moves reflect a growing trend among companies to enhance shareholder value and optimise capital structures.
The Lion-OCBC Securities Singapore Low Carbon ETF, which tracks the top 40 companies focusing on decarbonisation, has also shown impressive performance. It recorded a 31.6% total return over the past three years, marking it as the best-performing Singapore equity ETF by the end of April 2025. This ETF evaluates companies based on their carbon emissions relative to their sector, excluding those with significant fossil fuel involvement.
Retail investor activity has also been notable, with the 25 most net-sold stocks by retail investors in May averaging an 8.5% total return, surpassing the Straits Times Index’s 2.9% return. Non-STI stocks, such as Sheng Siong and SIA Engineering, led with 13% total returns.
As the year progresses, these buyback activities and investment trends are expected to continue influencing the market dynamics, potentially impacting stock valuations and investor strategies.
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