HK$139m surge in directors' stock buying

Buying of their own company shares by directors surged last week and selling remained low, based on filings made to the stock exchange for the period from February 25 to March 1.

Twelve companies reported 36 insider purchases worth HK$139 million, versus just two that reported four disposals worth HK$2.4 million. The buys were sharply up from the previous week's four companies, 19 purchases, and HK$1.48 million. Selling was down from the previous week's four companies that reported nine disposals worth HK$4.05 million.

Buyback activity by companies also rose, with six companies posting 27 repurchases worth HK$39.1 million. The figures were up from the previous week's five companies that reported 25 trades valued at HK$20.2 million.

Four stocks that recorded significant purchases last week were MGM China, Johnson Electric, CLP, and AV Concept.

Gaming firm MGM China bought back shares for the first time since the stock was listed in June 2011 with 625,000 shares purchased on March 1 at HK$19.03 each. The trade came after an 88 per cent rise in the share price since July 2012 from HK$10.10.

The buyback was made after the company announced a 38.17 per cent gain in year-end profit to HK$4.53 billion on February 20.