Last Week's Highlighted Buyback Stocks

Last Week's Share Buybacks

Last week, some companies listed on Borsa Istanbul conducted buyback transactions to support healthy price formation. Between January 26 - 30, Mia Teknoloji (MIATK), LDR Turizm (LIDER), Enerya Enerji (ENERY), Kalyon Güneş Teknolojileri (KLYPV), Escar Filo (ESCAR), Avrasya GYO (AVGYO), Metro Petrol ve Tesisleri (MEPET), Ofis Yem Gıda (OFSYM), and Lokman Hekim Sağlık (LKMNH) were among the most active stocks in terms of buybacks.

The Importance of Buybacks

Share buybacks are a strategy whereby companies repurchase their shares traded in the markets to increase the value of their own stock. This practice is often preferred to prevent the existing shares from losing value, evaluate cash flow, and provide confidence to shareholders.

Why Are Share Buybacks Done?

• Providing cash support to shareholders
• Reducing the excessive volatility of shares
• Preventing control of shares from falling into competitors' hands
• Evaluating idle cash
• Reaffirming confidence in the company’s shares

The Impact of Buyback on Company Performance

Share buybacks can lead to significant changes in a company’s Earnings Per Share (EPS). EPS plays a crucial role in demonstrating the financial strength and performance of the company. Investors evaluate the response of companies to challenges faced during periods when shares are repurchased.

How Are Buyback Transactions Conducted?

Share buyback transactions are carried out in accordance with the regulations set by the Capital Markets Board. It is emphasized that the shares subject to buyback must be capable of being traded on the stock exchange and that this process must be conducted by the board of directors within a specified timeframe.