Insider buys spring back, sales up for two straight sessions
Sino Land and Henderson Land's Lee Shau-kee among those snapping up shares in their firms
Insider buying rebounded sharply last week and insider selling was up for a second straight trading session, based on filings made to the stock exchange for the last week of August.
A total of 31 companies reported 176 purchases worth HK$140 million, versus 14 firms that reported 73 disposals worth HK$244.7 million. The figures were sharply up from the previous week's 17 companies that posted 78 purchases valued at HK$37.1 million; and five companies that made 17 disposals valued at HK$14.9 million.
Buybacks by companies also rose, with 22 companies disclosing a total of 83 repurchases worth HK$81.26 million. The numbers were up from the previous week's 13 companies that reported 65 repurchases, though the value was slightly down from the previous week's HK$92.6 million in buybacks.
Property developer Sino Land resumed buying its own shares after the announcement of first-half results on August 28, with 240,000 shares bought on August 30 at HK$12.69 each. The group posted a 19.52 per cent drop in first-half profit to HK$4.3 billion.
The purchase also came after the stock rebounded by 24 per cent from HK$10.26 on June 4.
The stock closed at HK$12.70 on Friday.
Chairman Lee Shau-kee acquired more shares in property developer Henderson Land Development at higher than his acquisition prices earlier this year, buying 881,000 shares from August 23 to 28 at an average of HK$48.66 each. The trades increased his holdings to 1.5027 billion shares, or 62.58 per cent of the issued capital.
The purchases were made on the back of a 31 per cent rebound in the share price since May 24 from HK$37.21. The acquisitions were also made after the company announced a 12.36 per cent drop in first-half profit on August 22 to HK$7.73 billion. Overall, Lee has acquired 18.5 million shares worth HK$797 million since January at an average of HK$42.97 each.
Prior to his purchases this year, Lee acquired 76.38 million shares worth HK$3.66 billion from March to December 2011 at an average of HK$47.94 each and 35 million shares worth HK$1.65 billion from April 2008 to June 2010 at an average of HK$47.40 each. The stock closed at HK$47.70 on Friday.
Independent non-executive director David Li Kwok-po recorded his first on-market trades in hotel group The Hongkong and Shanghai Hotels since 2007 with 180,000 shares bought from August 24 to 28 at an average of HK$9.39 each. The trades, which accounted for 23 per cent of the stock's trading volume, lifted his holdings by 32 per cent to 748,000 shares, or 0.05 per cent.
The acquisitions were made after the stock fell by 11 per cent from HK$10.50 on July 5. Despite the fall in the share price, the stock is still up since November 2011 from HK$8.14.
The purchases also came after the group announced a 57.32 per cent drop in first-half profit to HK$814 million on August 22. Prior to these trades, Li acquired 10,000 shares in September 2007 at HK$13.60 each. Li is the chairman and chief executive of Bank of East Asia. The stock closed at HK$9.40 on Friday.
Executive director Baby Zeng Jie recorded the first on-market trades by a director of property play Fantasia Holdings since the stock was listed in November 2009, with 8.135 million shares bought from August 22 to 27 at an average of 78.2 cents each.
The trades, which accounted for 70 per cent of the stock's trading volume, raised her holdings to 3.1879 billion shares or 61.22 per cent of the issued capital. They were made on the back of a 21 per cent drop in the share price since February from 99 HK cents. Despite the fall in the share price, the counter is still up since October 2011 from 57.3 cents.
Robert Halili is managing director of Asia Insider