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Tuesday, August 9, 2011

Firms buy back shares to cushion price declines (BT)

As many as 38 companies bought back their shares, filings to the stock exchange showed.

Analysts said that share buy backs at a time when the market takes a deep turn to the south is generally done to cushion the fall in stock prices.

Among the companies that bought back their own shares was Genting Bhd, which bought some 2.63 million shares at between RM10.02 a share and RM10.22 a share.

In total, Genting spent more than RM26.8 million to buy back its own shares yesterday. Genting closed at RM10.14 a share yesterday.

IOI Corp Bhd bought 1.77 million of its own shares at between RM4.68 and RM4.81 a piece. In total, the company had spent some RM8.4 million yesterday. The stock closed at RM4.68 a share.

Other companies that bought back their own shares yesterday were Tas Offshore Bhd, Hiratako Holdings Bhd, Batu Kawan Bhd, Latexx Partners Bhd, Fajarbaru Builder Group Bhd and Guan Chong Bhd among others.

Apart from the share buy backs, major stakeholders were also taking the opportunity to buy some of their company shares from the open market.

The Employees Provident Fund (EPF) was one of the biggest buyers.

In fillings to the stock exchange, it was revealed that the EPF had bought shares of Alliance Financial Group Bhd, Mah Sing Group Bhd, Star Publications (M) Bhd, Kulim Bhd, DRB HICOM Bhd and Petronas Gas Bhd, among others.

As for individuals, the fillings to the stock exchange showed that Tan Sri Vincent Tan Chee Yioun had kept buying Berjaya Media Bhd shares from the open market.

The tycoon now owns some 42.7 per cent of the company.

Dr Chiu Hong Keong, meanwhile, bought more of cash rich Pintaras Jaya Bhd, to bring his indirect stake in the company to 43.5 per cent.

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