The signal intensifies: The share buyback wave expands to six sectors with STG's joining
The phenomenon is expanding: Trading company STG International is joining the share buyback wave, bringing the number of prominent companies in the trend to six, spread across six different sectors. The move reinforces the signal that many managements view their shares as attractive investments under current market conditions.
The share buyback wave is expanding to six sectors with the joining of trading company STG International, which acquired shares for approximately ₪12,000. It joins Leumi, Clal, Nova (wait, Qualitau), Cello-Blue, and Shoham Business, intensifying the signal that many managements view their shares as an attractive investment under current market conditions.
The share buyback trend in the local capital market, which has stood out in recent weeks, continues to intensify and expand with the joining of a sixth player from a new sector. Trading company STG International (STG) reported executing a share buyback, thereby joining Bank Leumi, Clal Insurance, Qualitau, Cello-Blue Group, and A.N. Shoham Business. The expansion of the phenomenon into six separate economic sectors — banking, insurance, technology, real estate, non-bank credit, and now also trading — amplifies the signal to the market that this is a cross-cutting sentiment among managements, who view their shares as an attractive investment opportunity.
The new entrant: The trading sector
STG International, which engages in the import and marketing of products, reported a buyback of 356 shares for a modest sum of approximately ₪12,000. Although the amount is low compared to other moves, the very act of joining the trend is significant. The purchase is part of a program announced at the end of August 2026, and its execution rate now stands at approximately 19.8%. The company currently holds 2.32% of its issued capital as dormant shares. STG's joining demonstrates that companies of various sizes and from more "traditional" sectors are also finding value in utilizing the share buyback tool.
Last week's entrants: Real estate and finance
STG's joining comes shortly after companies from the real estate and non-bank credit sectors also joined:
- Cello-Blue Group, operating in the real estate field, reported a share buyback of approximately ₪55,000, as part of a program that has reached a 6.36% execution rate. The move indicates management's confidence in the company against the backdrop of the complex environment in the sector.
- A.N. Shoham Business, operating in the non-bank credit sector, purchased shares for approximately ₪73,000, reaching a 4.26% execution rate in its program. The company holds a high proportion of 7.86% of its capital as dormant shares, indicating a consistent strategy.
Trend leaders continue at a high pace
Alongside the expansion of the trend, the companies that led the current wave are continuing to implement their programs:
- Clal Insurance continues to exhibit a particularly aggressive execution pace. Following another purchase, the company has already completed 77.09% of its program within just about a month and a half.
- Qualitau, from the technology sector, crossed the 49% execution threshold of its program with an additional purchase of approximately ₪1 million.
- Bank Leumi is systematically continuing its massive program. The bank purchased shares for approximately ₪8.5 million in an off-exchange transaction, reaching an execution rate of 35.55% of the program, while holding an exceptional 9.16% of its capital as dormant shares.
A strengthening cross-industry signal
The cumulative picture is no longer an isolated incident, but a broad phenomenon spanning six key sectors in the economy: banking (Leumi), insurance (Clal), high-tech (Qualitau), real estate (Cello-Blue), finance (Shoham Business), and trading (STG). A share buyback reduces the number of shares available for trading, which can lead to an increase in earnings per share (EPS) and improve return on equity. The fact that such diverse managements, each with its unique set of considerations, reached the same conclusion within the same time window amplifies the signal to the market. This may reflect a broader sentiment among managers regarding low valuations in the current market, and their confidence in their ability to generate value for shareholders through this move.