Shares in the Japanese Telecoms conglomerate SoftBank Group soared by 16% on Tuesday following the announcement of the biggest ever buyback, purchasing 500 billion yen ($4.4 billion) worth of its own shares.

This buyback is an attempt to boost investor confidence, a move which has been welcomed.

Analyst at SMBC Friend Research Center Ltd, Naoki Yokota, has said,

“SoftBank shares have become so cheap now. For the company to say it’s buying back at this time will have an ‘announcement effect’,”

SoftBank have said that it would fund this buyback through a combination of the proceeds of asset sales and cash-in-hand.

Shares closed on Monday up 5.7%