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

PUBLISHED : Monday, 25 February, 2013, 12:00am
UPDATED : Thursday, 07 May, 2015, 3:28pm


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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.

Also positive this quarter is Aberdeen Asset Management, with an initial filing on January 23 of 10 million shares at HK$30.60 each, which boosted its stake to 602.437 million shares or 5 per cent.

The stock closed at HK$31.95 on Friday.

Chairman Alan Chuang recorded his first trades in Chuang's Consortium since October 2011, with 636,000 shares bought from February 15 to 19 at an average of HK$1.14 each. These increased his holdings to 896.072 million shares or 54.23 per cent of the issued capital.

The acquisitions were made after a 46 per cent rise in the share price since September 2012 from 78.4 HK cents. The counter is also sharply up since January 2012 from 67.6 HK cents.

Chuang previously acquired 10 million shares in October 2011 at 70 HK cents each; and 78 million shares from May 2006 to December 2008 at an average of 75 HK cents each.

The stock rose an average 16 per cent three months after he bought shares based on 207 acquisitions since 1994.

Robert Halili is managing director of Asia Insider