Purchases by company directors sharply lower as sales remain high

Acquisition value declines to HK$32.5 million with trading spread across several sectors

PUBLISHED : Monday, 15 October, 2012, 12:00am
UPDATED : Monday, 15 October, 2012, 2:53am

Buying of their own company shares by directors plunged last week, but sales remained high, based on filings made to the stock exchange for the second week of October.

Insider purchases were reported by 28 companies with 107 deals worth HK$32.5 million, compared with 15 companies that reported 90 disposals worth HK$65.8 million.

On the buying side, the number of companies and the value of the transactions were down from the previous week's 30 companies that reported HK$149.2 million in purchases; while the number of deals was slightly up from 89 previously.

Sales were consistent with the previous week's 10 firms that reported 63 disposals, but the value was sharply down from HK$147.5 million.

The trading was spread across several sectors, with insider purchases in Samsonite International and Bank of East Asia; and sales in casino operator Galaxy Entertainment and Honghua.

Executive director Ramesh Dungarmal Tainwala resumed buying shares of luggage manufacturer and retailer Samsonite at higher than his previous acquisition prices, with 527,000 shares purchased on October 3 at HK$14.70 each. The trade increased his holdings to 0.72 per cent of the issued capital.

The acquisition was made on the back of a 27 per cent rise in the share price since the second week of July from HK$11.54.

But insider sentiment in the stock has not been entirely positive this year as chief financial officer Kyle Gendreau unloaded one million shares on September 19 at HK$14.80 each.

The stock closed at HK$15.94 on Friday.

Chairman David Li Kwok-po resumed buying shares of BEA after the stock rebounded nearly 8 per cent from HK$27.05 on September 6, with 166,000 shares purchased from October 8 to 9 at an average of HK$29.10 each. The trades increased his holdings to 3.1 per cent.

Non-executive director Khoo Kay Peng unloaded 679,000 shares in the bank from October 3 to 10 at an average of HK$29.35 each. The trades reduced his holdings to 0.04 per cent.

The stock closed at HK$28.95 on Friday.

Managing director Joseph Chee Ying Keung unloaded 650,000 shares in Galaxy from October 3 to 8 at an average of HK$25.13 each. The trades reduced his holdings 0.06 per cent. The disposals were made after the stock rebounded 43 per cent from HK$17.54 in July.

The stock closed at HK$25 on Friday.

Executive chairman Zhang Mi unloaded shares of oil and gas drilling rigs manufacturer Honghua at higher than his previous sale prices, with 400,000 shares sold from October 8 to 9 at an average of HK$1.58 each. The trades cut his holdings to 49.96 per cent.

Investors should note that Capital Group reported an initial filing (for the second time since December last year) on March 14 of 990,000 shares at HK$1.22 each, which boosted its stake to 5 per cent.

The group previously sold 1.94 million shares in February at 99 HK cents each, lowering its interest to 4.97 per cent.

The stock closed at HK$1.64 on Friday.

Robert Halili is managing director of Asia Insider