More listed firms buy back shares

MANILA, Philippines - Listed companies continue to buy back shares to support their stock amid the prevailing market volatility.

 In a disclosure to the Philippine Stock Exchange (PSE), food and beverage company RFM Corp., said it repurchased 47,000 shares at P4.20 per share last Sept. 16.

This brings RFM’s total repurchased shares to 47.218 million, valued at P188.127 million.

The buy back is part of the company’s plan to repurchase up to P300 million worth of shares.

 “The corporation intends to implement the share buy-back program as buying opportunity presents itself and up to the time when the total appropriated amount for the share buy-back program is exhausted. Management can still seek additional budget for the share buy-back program if and when warranted,” RFM said.

 RFM is one of the leading producers of pasta and ice cream.

Meanwhile, Semirara Mining and Power Corp. (SMPC) bought back 142,000 shares at an average price of P110.09 per share.

“The buyback program is undertaken to enhance shareholder’s value and to provide stockholders an opportunity to liquidate their investments,” Semirara said.

To date, the company has purchased a total of 2.85 million shares worth P318.31 million. Semirara appropriated P1.5 billion for its buyback program.

Vista Land and Lifescapes Inc., likewise, repurchased 36,400 shares at an average price of P5.45 a piece.

The property firm budgeted P1.5 billion for its buy-back program. It has so far repurchased P1.275 billion worth of shares.

According to Luis Limlingan, managing director at Regina Capital Development Corp., buybacks are normally taken as a positive sign by the stock market.

“There are several reasons why the companies opt for buybacks. One is that they have found their stock attractive at this point, whether it be market conditions or simply investors are undervaluing it,” Limlingan said.
“Another reason is to support the stock when there is massive sell off,” he added.
The stock market plunged 154.66 points or 2.006 percent  last Friday to finish at 7,553.76.