Stock buybacks are once again in the limelight, and are expected to have a supporting effect due to volatile market conditions

8/14/2024 5:03 PM GMT+9 (some excerpts)

The movement of companies to buy back their own shares is once again in the spotlight. Stock buybacks have played a part in the strong trend in Japanese stocks since last year. In the face of falling stock prices, there is also speculation that utilization will expand further as a method leading to capital efficiency improvements at low cost, and expectations are growing as a underpinning for volatile market prices.
There are many cases where stock prices of companies that have announced share buybacks are well received, and the effects have generally been confirmed even in the current historical market decline.
There were cases where sales became dominant due to other bad materials, such as the SoftBank Group (9984.T), where stock depreciation of companies under its umbrella overlapped, but Canon (7751.T), which announced its share buyback on the 6th, began with a retrograde high while the index showed a negative trend in the morning of the next day, and when the index turned positive, the increase expanded to over 12% at one point.