Director deals rise again but value sharply down
Overall value of trades nearly half that of the previous week, as buyback activity increases
Director dealing in their own company shares was active for a third straight session last week, with 182 transactions worth HK$164 million reported to the stock exchange for the week from January 7 to 11.
The number of transactions was higher than the previous week's four-day total of 158 trades. The value, however, was sharply down from HK$323 million.
Buyback activity among listed firms was up, with 11 companies that posted 51 repurchases worth HK$358.5 million. While the number of firms was unchanged, the number of trades and value were sharply up from the previous week's four-day totals of 34 transactions worth HK$105.5 million.
Lee & Man Paper Manufacturing and Billion Industrial Holdings bought back shares for the first time following the sharp rise in their share prices; and among directors, Wheelock & Co chairman Peter Woo Kwong-ching was not deterred by the rise in the Wheelock share price from buying more shares.
Paper products manufacturer Lee & Man Paper bought back shares for the first time since the stock was listed in September 2003, with 5.84 million shares purchased from January 9 to 11 at an average of HK$4.89 each. The trades, which accounted for 23 per cent of the stock's trading volume, were made on the back of a 62 per cent rebound in the share price since July 2012 from HK$3.02.
The counter, which is sharply up since October 2011 from HK$2.24, closed at HK$4.92 on Friday.
Polyester filament yarn manufacturer Billion Industrial bought back shares for the first time since the stock was listed in May 2011, with 41.638 million shares worth HK$214.74 million purchased from January 9 to 11 at an average of HK$5.16 each.
The repurchases, which accounted for 92 per cent of the stock's trading volume, were made on the back of a 30 per cent rise in the share price since October 2012 from HK$3.98. The counter is also sharply up since February 2012 from HK$3.63.
Investors should note that the buyback price was near the IPO price of HK$5.18. The stock closed at HK$5.15 on Friday.
Woo bought 799,000 Wheelock shares from December 31, 2012 to January 4 at an average of HK$39.50 each.
The trades, which accounted for 16 per cent of the stock's trading volume, increased his holdings to 1.221 billion shares or 60.09 per cent of the issued capital. Woo previously acquired 4.158 million shares from August to October 2012 at an average of HK$30.89 each and 8.7 million shares from March to July 2012 at an average of HK$25.84 each.
The stock has continued to climb, closing higher from the chairman's last purchase price to HK$43.75 on Friday.
Chairman Li Wing-sang and executive director Chiu Chi-hong acquired shares of aluminium electrolytic capacitors' manufacturer Tech Pro Technology Development this month, with a combined 3.53 million shares purchased from January 4 to 9 at an average of HK$2.79 each.
The acquisitions were made on the back of a 9 per cent drop in the share price since October 2012 from HK$3.06.
Li picked up where he left off in September 2012 with three million shares bought from January 8 to 9 at HK$2.79 each, which boosted his stake to 138.6 million shares or 12.88 per cent of the issued capital.
Chiu bought 530,000 shares on January 4 at HK$2.81 each, which increased his holdings to 45.8 million shares or 4.26 per cent.
Robert Halili is managing director of Asia Insider