Big caps swoop in to buy back shares as market convulses on Trump tariffs

[SINGAPORE] Constituent companies in the Straits Times Index (STI) lost no time in picking up their own shares on Monday (Apr 7) after the benchmark index tanked 7.5 per cent on US President Donald Trump’s 10 per cent tariffs.

All 30 constituents of the Straits Times Index (STI) dived on Monday, pushing the STI down 285.36 points to 3,540.5 for its worst fall since 2008. The trio of local banks led the beating, with DBS down almost 10 per cent or S$4.02 to S$39.28, OCBC declined 6.9 per cent or S$1.15 to S$15.47 and UOB decreased 6.3 per cent or S$2.23 to S$33.23.

More buybacks are likely in the days to come as markets are not out of the woods yet. Trump’s baseline 10 per cent tariff on all imports took place over the weekend, with markets crashing when trading opened on Monday. As at 10 am on Tuesday, the STI was down 2.5 per cent, against a regional market recovery including in Tokyo, Hong Kong and Australia.

A second wave – the reciprocal import tariffs that will be debilitating for many countries – comes into effect on Apr 9. It’s anyone’s guess how the markets will react.

Among blue chips which bought back shares in the market rout were the hard-hit Singapore banks.

DBS bought back and cancelled 1,000,000 shares for a total of S$39.1 million at the price range of S$36.31 to S$40.32. This follows its announcement of a S$3 billion share buyback programme in November 2024. The counter closed Monday 9.3 per cent or S$4.02 lower at S$39.28. 

UOB repurchased 100,000 shares for S$3.3 million, between the price range of S$29.68 and S$34.21, cancelling 50,000 of them and holding the remaining half in treasury. The counter ended Monday 6.3 per cent or S$2.23 down at S$33.23.

Among index stocks that picked up shares was bourse operator Singapore Exchange (SGX), which said it spent S$1.8 million buying back 150,000 shares at S$11.86 to S$12.15. The counter closed 9.4 per cent or S$1.23 lower at S$11.79 on Monday.

 ST Engineering paid between S$6.16 and S$6.36, or a total of S$3.1 million to repurchase 500,000 shares. The defence and engineering group is one of the biggest blue-chip gainers year to date with a gain of more than 40 per cent. The counter closed 7 per cent or S$0.47 lower at S$6.22 on Monday.

Venture Corporation bought back 50,000 shares at an average price of S$10.88, spending over S$544,000. The counter closed 8.9 per cent or S$1.06 lower at S$10.88 on Monday.

National carrier Singapore Airlines (SIA) repurchased 500,000 shares at a price range of S$6.04 to S$6.27, spending about S$3.1 million in total. The counter closed 7 per cent or S$0.46 lower at S$6.09 on Monday.

Chinese vesselmaker Yangzijiang Shipbuilding on Monday repurchased two million shares at S$1.85 to S$1.90, for a total spend of S$3.8 million. The counter closed Monday S$0.25 or 11.5 per cent lower at S$1.92. It said the purchases will be added to its treasury shares.