Trading firm Sumitomo said it will buy back its shares and implement a progressive dividend policy, putting it in line with the other four major competitors in a bid to boost shareholder returns.
Sumitomo will allocate 700 billion yen ($4.5 billion) in returns over the next three years, targeting a total shareholder return ratio of 40%, the company said in a filing on Thursday. It also targets a return on equity of at least 12% for the fiscal year ending March 2027, and plans to buy back ¥50 billion of shares.
The stock closed 4.4% higher, a record high, after briefly rising as much as 7.6%. Trading volume increased fivefold the quarterly daily average.
