SMIC initiates P60-billion stock buyback program in Philippines

SM Investments Corp. (SMIC), the largest company in the Philippines by market capitalization, has started a major stock buyback program worth P60 billion. This move demonstrates the company's confidence in its future growth potential. On the first day of the program, SMIC reported buying back shares worth P48.6 million. The shares purchased included 60,000 units at an average price of P810 each. This announcement comes shortly after SMIC revealed its first buyback program in its 60-year history, citing a significant undervaluation of its shares. CEO Frederic DyBuncio expressed that the current share price does not reflect the company's historical valuation or future potential. SMIC aims to buy back about 6 percent of its outstanding shares as part of this initiative. On Friday, the company’s share price fell by 1.23 percent to P800. Since the start of the year, the stock has declined by 9.3 percent. Buybacks are often used by companies to boost their stock prices and encourage investor confidence. Analysts view SMIC's buyback program as a signal of optimism about the economic outlook in the Philippines, especially since the company operates in multiple sectors. Last year, SMIC reported a record net income of P82.6 billion, a 7 percent increase, driven by strong performances in its core businesses despite rising inflation.