SoftBank share buybacks near $3 billion despite May slowdown

SoftBank's share buybacks slowed in May, a company filing showed on Friday, although total purchases to support its share price since March reached 312 billion yen (2.9 billion U.S. dollars).

The buybacks, funded by a major asset sale program, are part of a record up to 2.5 trillion yen undertaking by SoftBank, which spent 61 billion yen buying back its shares in May, compared with 235 billion yen in April.

"Market sentiment was strong for its underlying holdings so SoftBank may have decided to keep some powder dry," said Kirk Boodry, analyst at Redex Research.

SoftBank Chief Executive Masayoshi Son is trying to stabilize the group, which has been hit by underperformance at some of its biggest technology investments.

The group's earnings were reported in May, where its 100 billion U.S. dollars Vision Fund reported a 1.9 trillion yen operating shortfall, pushing SoftBank to a record full year loss.

The company's buybacks have caused concern at credit rating agencies, with SP Global Ratings saying on Thursday it puts SoftBank's financial rigor in question.

SoftBank's shares, which have gained around 90 percent from their March lows, closed down 2.2 percent on Friday.

(CGTN)