New share buyback rules to benefit banks

Analysts expect Thailand’s new share buybackrules, specifically the removal of the six-month cooling-off period before companies can launch a new buyback programme, will benefit commercial banks and large-cap companies with substantial excess liquidity.

- NUNTAWUN POLKUAMDEE

The revised criteria, proposed by the Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC) to the Department of Business Development, were published in the Royal Gazette on Nov 14, creating a broadly positive sentiment for listed companies.

Daol Securities said eliminating the mandatory six-month waiting period after completing a buyback scheme will allow many firms to conduct buybacks more continuously.

Bank stocks are expected to benefit the most, particularly TMBThanachart Bank (TTB), which is running a three-year buyback programme that should help support its share price.

The brokerage said the change favours large-cap companies with strong liquidity positions and ongoing repurchase plans.