This article first appeared in The Edge Financial Daily on April 9, 2018

KUALA LUMPUR: The volume of share buy-backs by Bursa Malaysia-listed companies in March reached a 19-month high of 138.45 million shares. The number of companies involved in buying back their own shares was 63.

Bloomberg data showed this is the highest buy-back volume since July 2016, when the amount totalled 205.8 million shares. The March figure was also more than four times higher than February’s 34.12 million.

The five companies that undertook the largest buy-backs in March were Malakoff Corp Bhd, KSL Holdings Bhd, Sunway Bhd, Fitters Diversified Bhd and Genting Malaysia Bhd. They accounted for 75% of the total repurchase volume in March.

Malakoff’s share price has been trending downwards for more than a year. Last Wednesday, the counter fell to its all-time low of 85 sen. It recovered to close the week at 86.5 sen, with a market capitalisation of RM4.25 billion. The stock has declined 11.74% since closing at 98 sen on 2017’s last trading day of Dec 29.

Meanwhile, in terms of percentage to the total paid-up share capital, Federal Furniture Holdings (M) Bhd’s repurchase from the open market represented 3.24% of its entire outstanding shares, the highest among the 63 companies.

This was followed by KSL Holdings (3.14%), Fitters Diversified (2.53%), Eonmetall Group Bhd (0.74%) and Malakoff (0.73%).

Federal Furniture’s share price has trended somewhat similarly to Malakoff’s since early November last year.

Last Friday, the counter fell to its 33-month low of 37 sen, giving it a market capitalisation of RM38.55 million. The stock has declined 32.73% from 55 sen on Dec 29 last year.

The FBM KLCI rose 0.14% in March, and by 4.5% in the first quarter of the year.