Yangzijiang Shipbuilding (SGX:BS6) saw its stock price soar by 4.12% during intraday trading on Friday, following the company's announcement of a significant share buyback. The shipbuilder's latest move to repurchase its own shares has sparked investor interest, driving the stock to new heights.

According to a filing with the Singapore Exchange, Yangzijiang Shipbuilding bought back 2 million shares in the open market on Thursday for a total of SG$3.9 million. This latest buyback is part of a larger program authorized by the company, which permits the repurchase of approximately 395.1 million shares. To date, the company has already bought back 9 million shares, demonstrating a consistent commitment to this strategy.

Share buybacks are often viewed favorably by investors as they can potentially increase the value of remaining shares and signal management's confidence in the company's future prospects. By reducing the number of outstanding shares, earnings per share can increase, making the stock more attractive to investors. The market's positive reaction to Yangzijiang Shipbuilding's buyback suggests that investors are interpreting this move as a sign of the company's financial strength and optimistic outlook for its business.

YZJ Shipbldg SGD soars 4.12% at 2:41 pm, Apr 11th.