Tokyo market is bustling Japanese company breaks record by buying back shares. Toyota invests 1 trillion yen, highest in history.

Japanese listed companies announce record-high share repurchases in the first 5 months of 2567, with Toyota spending 1 trillion yen to buy back shares, the highest in history.

On June 12, 2024, Nikkei Asia reported that 606 Japanese listed companies announced share buybacks, a record high for the year, following calls from the Tokyo Stock Exchange for companies to improve their capital efficiency. If this trend continues, 2024 would mark the third consecutive year with the highest number of share buybacks.

During the month of January – May 2567 Japanese companies announced plans to buy back shares worth a total of about 9 trillion yen (US$5.7 billion), up about 60% from last year and up as much as 80% in May. In just one month, it reached 5.8 trillion yen, also a record high.

The figure accounted for about one-fifth of the companies' net profits in the fiscal year ended in March. These companies will buy back more shares.

The company that made the largest share buybacks is led by Toyota, which announced plans to repurchase shares worth up to 1 trillion yen in May, the largest amount in the history of non-financial companies in Japan.

Sony also announced a share buyback program worth 2.5 billion yen after forecasting a 5% profit decline in 2564, causing Sony shares to jump 8%.

In addition, listed companies that announced share repurchases for the first time accounted for 10% of the total. Including Shimadzu, a manufacturer of measuring and analytical instruments, Sumitomo Heavy Industries, a manufacturer of integrated industrial machinery, and Hoshizaki, a company. Manufacturer of ice makers and cold storage freezers.

This move not only helped to make the stock price soar. But it is a channel for the company to deal with stocks that are being sold off. After businesses began to relax cross-shareholdings In addition, It also helps return money to shareholders. and increase the ratio of share price to book value as well

Reference: asia.nikkei.com

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