Warren Buffett is someone who actively encourages companies to buy back their shares if the conditions are right.
He once said that when the shares of outstanding companies with strong financial positions are selling below their intrinsic value, no other action can benefit shareholders as share repurchases can.
On that note, let’s look at three Straits Times Index (SGX: ^STI) components picked at random that have repurchased their shares during the week (as of 16 March 2018, 11:30 am).
CapitaLand Limited (SGX: C31)
CapitaLand is one of Asia’s largest real estate firms with a global portfolio of assets such as integrated developments, shopping malls, and offices.
On 12, 13, 14 and 15 March 2018, the property outfit bought back a total of 4,101,400 shares at a price range of between S$3.64 and S$3.69 per share. The total cost came up to around S$15.1 million.
CapitaLand’s shares closed at S$3.68 on Thursday. This translates to a price-to-book (PB) ratio of 0.8 and a dividend yield of 3.3%.
Oversea-Chinese Banking Corporation Limited (SGX: O39)
Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.
On 12, 13, 14 and 15 March, OCBC repurchased 800,000 shares at a price range of between S$13.42 and S$13.53 apiece. The total cost was close to S$10.8 million.
Shares of OCBC ended at $13.43 on Thursday, giving a PB ratio of 1.5 and a dividend yield of 2.8%.
United Overseas Bank Ltd (SGX: U11)
With more than 500 branches in 19 countries, United Overseas Bank, more commonly known as UOB, is one of the largest banks in Southeast Asia.
On 12, 13, 14 and 15 March, UOB bought back 162,265 shares ranging from S$28.30 to S$28.95 per share, translating to a total cost of around S$4.7 million.
UOB’s shares last changed hands at S$28.58 on Thursday. This gives a PB ratio of 1.4 and a dividend yield of 2.8%, excluding special dividend.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of United Overseas Bank Ltd. Motley Fool Singapore contributor Sudhan P doesn't own shares in any companies mentioned.