SMC told the Philippine Stock Exchange (PSE) its board of directors has approved a share repurchase program that will allow them to buy back up to 10 percent of the company’s issued and outstanding capital stock.
"This move is in line with the recent pronouncement of the PSE board to inject liquidity into the marketplace for the benefit of the investing public," the SMC statement said.
Last month, the PSE relaxed its grip on companies buying back their own shares with the adoption of a policy allowing listed companies to acquire their own shares from the market of up to 10 percent of their issued and outstanding capital stock.
The PSE said it views this share buyback policy as "a positive move not only to allow listed companies to take advantage of attractive prices of their own shares but also to inject needed liquidity into the market place for the benefit of the investing public."
Listed companies such as Jollibee Foods Corp. and Aboitiz Equity Ventures recently initiated their share buyback programs at the PSE.
Last year, SMC had embarked ahead with its buyback policy as it repurchased an accumulated 10 percent of its outstanding stocks as of end-December.– Conrado Diaz Jr.