Opinion | Slow week for trades as reporting season approaches
Ban on executives trading shares prior to results is the likely reason for the low volume of deals
Insider deals remained low last week, with just 28 transactions worth HK$5.5 million based on filings made to the stock exchange for the period February 18 to 22. The figures were not far off the previous week's 2-day totals of 13 trades worth HK$5.1 million.
Low activity of the past two weeks is likely due to the busy reporting period from March to April as executives are banned from trading in their firms' shares one to two months prior to the announcement of results.
Although buying was low last week, there were several significant purchases by directors. Two stocks that recorded key insider buys were AIA Group and Chuang's Consortium International. Meanwhile, funds continued to pare down their holdings with disposals in Huaneng Renewables and China Power Development.
Chief executive Mark Tucker acquired more shares in insurance services provider AIA, with 316 shares bought on February 15 at HK$30.86 each. The trade increased his holdings to 11.840 million shares, or 0.1 per cent of the issued capital.
Tucker previously acquired 319 shares on January 15 at HK$30.55 each; 4,300 shares from January 16 to December 18, 2012 at an average of HK$27.53 each; and 453,000 shares from October 2010 to December 2011 at an average of HK$23.04 each.
Investors should note that the stock rose by an average of 9 per cent six months after he bought shares, based on 16 acquisitions since 2010. The stock recorded gains six months after 92 per cent of those buys.