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PUBLISHED : Monday, 29 October, 2012, 12:00am
UPDATED : Monday, 29 October, 2012, 12:31pm

Sharp price gains prompt directors to unload stocks

Sales climb over holiday-shortened week to HK$137.9m while buying drops to HK$38.4m

Selling of their own companies' shares by directors surged last week, based on regulatory filings made with the stock exchange during the holiday-shortened week of October 22 to 26.

In all, 16 companies reported 59 disposals worth HK$137.9 million during the period, compared with the previous week's 12 companies that reported 53 disposals valued at HK$36.6 million.

On the buying side, 23 companies reported 86 purchases worth HK$38.4 million, sharply down from the previous week's 32 companies that reported 118 purchases valued at HK$69.9 million.

Executive director Albert Yeung Kam-yin recorded his first on-market trade in developer and infrastructure firm Hopewell Holdings since October 2009 with 80,000 shares sold on October 25 at HK$29.87 each. The sale was made after a 53 per cent rise in the share price since June from HK$19.50. The stock closed at HK$28.85 on Friday.

Executive chairman Chum Hon-sing recorded the first on-market trades by a director of household and clinical hygienic disposable products manufacturer Newtree Group Holdings since the stock was listed in January last year.

Chum sold 4 million shares from October 19 to 22 at an average of HK$1.99 each.

The sales followed a 53 per cent rise in the share price since June from HK$1.30. The stock closed at HK$1.99 on Friday.

Chief executive Zhou Yong and executive directors Zhou Hancheng and Tian Shuchen unloaded shares of construction firm China State Construction International Holdings in the past month with a combined 6.62 million shares sold from September 26 to October 22 at HK$8.77 to HK$9.39 each, or an average of HK$9.02 each.

The disposals were made following a sharp rise in the share price since October last year from HK$3.85.

Zhou Yong sold 2.8 million shares at an average of HK$8.85 each, while Zhou Hancheng sold nearly 2 million shares at HK$9.20 each and Tian Shuchen unloaded a net 1.84 million shares at HK$9.10 each.

The stock closed ay HK$9.13 on Friday.

There was also heavy profit taking by chairman William Zen Wei-pao in toll road operator Road King Infrastructure this month, with 6.31 million shares sold from October 9 to 24 at HK$5.65 to HK$5.37 each, or an average of HK$5.40 each.

Executive director Derek Zen Wei-peu, on the other hand, bought 1.76 million Road King shares from April 10 to June 4 at an average of HK$4.79 each, which boosted his stake to 11.34 million shares or 1.53 per cent.

The stock closed at HK$5.34 on Friday.

Robert Halili is the managing director of Asia Insider

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