To The Moon

Singapore Stock Market Buyback Boom: $930 Million Kickoff, Led by the Big Three Banks

The Singapore Exchange (SGX) is off to a roaring start in 2025, with share buybacks hitting an impressive SGD 930 million (around USD 690 million) in just the first five months — that’s an eye-popping 84% jump compared to the same period last year! 

This marks the strongest buyback spree in half a decade, signaling renewed confidence from Singapore-listed companies amid a shifting global economic landscape.

Monthly Highlights: April and May Keep the Momentum

April was a blockbuster month, with buybacks soaring to SGD 425 million — the fourth highest monthly total on SGX in the last ten years. May kept the momentum alive with SGD 176 million in buybacks, led by UOB's hefty SGD 144 million repurchase at an average price of SGD 35.33 per share.

As detailed in the chart below, the month of April 2025 produced the fourth highest monthly tally in buyback consideration for the past 10 years. 

Banks Take Center Stage

Leading this capital return rally are Singapore’s banking titans: $DBS Group Holdings(D05.SI)$  , $UOB(U11.SI)$   and $ocbc bank(O39.SI)$  . Together, these three powerhouses are responsible for a whopping 77% of the total buybacks, splashing out SGD 712 million to repurchase their own shares. DBS topped the list with SGD 277 million, closely followed by UOB's SGD 253 million and OCBC's SGD 182 million.

Why the banks? Their aggressive buybacks reflect not only strong capital buffers but also a bold vote of confidence in their future earnings. In a world grappling with rising interest rates, these banks are capitalizing on improved net interest margins, while also sending a clear message to investors: they believe in their growth story and are committed to rewarding shareholders.

Beyond Banking: Industrial Players Step Up

The buyback momentum extends beyond banks, with industrial firms actively returning capital. $Sembcorp Ind (U96.SG)$ leads the non-bank group with SGD 49 million in buybacks, reflecting its strong growth in renewables and rising profits. $YZJ Shipbldg SGD (BS6.SG)$ and $ST Engineering (S63.SG)$ followed with SGD 30 million and SGD 19 million respectively, both playing key roles in supporting Singapore’s industrial sector. 

$Venture (V03.SG)$ also joined the trend with SGD 18 million in repurchases. Even the $SGX (S68.SG)$ itself repurchased SGD 16 million worth of shares, signaling confidence in the market’s infrastructure and future prospects. Together, these players highlight a broad-based corporate commitment to rewarding shareholders across sectors.

What Does This Mean for Investors?

This buyback frenzy is more than just numbers — it's a strategic move by companies to stabilize share prices, optimize capital, and boost shareholder value during uncertain times. It reflects a balancing act: returning capital to shareholders while keeping an eye on future growth.

With banks leading the charge and industrial players following suit, 2025 is shaping up to be a dynamic year for SGX buybacks. Investors should watch closely as companies navigate this capital return wave — it could signal exciting opportunities ahead.

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