Surge in director sales on Hong Kong exchange

Buying of their own company stock by directors was flat last week, but selling surged.

In all, 42 companies reported 153 purchases worth HK$104.4 million, based on filings to the stock exchange, compared with 11 companies reporting 43 disposals worth HK$60.9 million.

The number of companies and trades on the buying side was in line with the previous week's 43 companies that reported 149 acquisitions, but the value of the trades was sharply down from the previous week's purchases worth HK$175.3 million. Sales were sharply up from the previous week's eight companies that reported 20 disposals worth HK$7.4 million.

Chief executive Mark Edward Tucker resumed buying shares of financial services provider AIA Group at higher than his previous acquisition prices, with 300 shares bought on September 17 at HK$29.30 each. The trade increased his holdings to 11.837 million shares, or 0.1 per cent of the issued capital.

The purchase was made after the stock rose by 12 per cent from HK$26.10 on September 4.

Tucker acquired 3,100 shares from January 16 to August 15 at HK$24.02 to HK$28.28 each, or an average of HK$25.42 each. Prior to his trades this year, he acquired 453,000 shares from October 2010 to December last year at an average of HK$23.04 each.

The stock closed at HK$28.45 on Friday.

There was a company buy-back and purchases by co-chairman Michael John Hibberd in oil explorer and producer Sunshine Oilsands, with a combined 4.174 million shares purchased from September 13 to 20 at HK$4.03 to HK$3 each, or an average of HK$3.53 each. The purchases followed the stock sliding by as much as 32 per cent from HK$4.44 on August 31.

Sunshine Oilsands bought back 3.524 million shares from September 18 to 20 at an average of HK$3.48 each. The group previously acquired 23.9 million shares from June 14 to 19 at an average of $4.64 each.

Hibberd, on the other hand, recorded the first on-market trades by a director of the company since its listing, with 650,000 shares bought from September 13 to 19 at an average of HK$3.73 each, which raised his holdings to 92.6 million shares, or 2.95 per cent. The stock closed at HK$3.32 on Friday.

There were buy-backs and a purchase by chairman Thomas Chan in toymaker Playmates Holdings this month, with a combined 1.136 million shares bought from September 4 to 17 at an average of HK$4.01 each. The purchases, which accounted for 22 per cent of trading volume, were made after the stock fell by 18 per cent from HK$3.41 on August 1. The company bought back 1.036 million shares from September 4 to 10 at an average of HK$3.97 each, after previously acquiring 8.9 million shares from January 10 to July 6 at an average of HK$3.25 each, and 11.07 million shares from March to December 2011 at an average of HK$2.81 each.

Chairman Thomas Chan acquired 100,000 shares on September 17 at HK$4.40 each, which increased his holdings to 113.500 million shares or 47.68 per cent. The stock closed at HK$4.51 on Friday.

Founder and chairman Kan Kwok-cheung recorded his first on-market trades in waterworks engineering services provider CNC with 19.4 million shares sold from September 14 to 19 at an average of 71 HK cents each.

The trades, which accounted for 24 per cent of the stock's trading volume, reduced his holdings to 389.8 million shares, or 23.28 per cent. Executive directors Martin Cheng and Eric John Chia sold 89.8 million shares from January 3 to June 20 this year, at HK$1.24 to 75 HK cents each, or an average of $1.06 each. The counter closed at 72 HK cents on Friday.

Robert Halili is managing director of Asia Insider