TO many amateur market observers, stock repurchases mean only one thing: falling prices and an attempt to support the stock or at least cushion the fall.
But the professionals see other reasons for companies to go into the market in pursuit of their own shares. Cancellation has several effects on the company.
''If the shares are bought back at below net asset value (NAV), then buy-backs enhance [this value],'' said Hazel Moore, head of research at WI Carr.
''It should also boost earnings per share, and it raises the percentage stake of the controlling shareholder.
''In general, it is seen as a positive thing. It could mean companies feel they are being significantly undervalued by the market. At Wheelock, I think they feel there is considerable hidden value in the share price.'' In January, Wheelock and Co shares were tipped as a bargain by James Capel Asia, when they stood at $22.80, and were at a premium to the appraised NAV of $21.60.
The buy-backs could also be interpreted as indicating slightly bearish sentiment on the property market, according to Ms Moore.
''They are buying their shares rather than property - that is bearish,'' she said.