Directors' selling slows over holiday week

Insider share purchases rise yet again but sales show sharp decline compared to previous week

PUBLISHED : Monday, 30 December, 2013, 1:09am
UPDATED : Monday, 30 December, 2013, 1:13am

Buying of their own company shares by directors rose for the fourth straight week and selling slowed during the holiday-shortened week of December 23 to 27.

A total of 33 companies reported 130 director purchases worth HK$338 million, versus 11 companies that reported 30 disposals worth HK$89 million. The number of companies and trades on the buying side was not far off the previous week's 5-day totals of 40 firms and 177 purchases, though the value was up from the previous week's acquisitions worth HK$277 million.

Sales, on the other hand, were sharply down from the previous week's 16 companies that reported 77 disposals worth HK$154 million.

Significant insider trades included purchases in Allied Group, L'Occitane International, and Paradise Entertainment. On the selling side, the chairman of Haier Electronics unloaded heavily after the stock surged by 96 per cent.

Chief executive Lee Seng Hui resumed buying shares of financial-services provider Allied Group at higher than his acquisition prices from July 2011 to November this year, with 504,000 shares purchased from December 19 to 20 at HK$30.40 each. The trades increased his holdings to 125.761 million shares or 68.43 per cent of the issued capital.

Non-executive director Pierre Maurice Georges Milet and executive director Emmanuel Laurent Jacques Osti recorded their first trades in natural cosmetics retailer L'Occitane International since the stock was listed in May 2010, with 217,000 shares purchased from December 11 to 18 at an average of HK$16.56 each.

Milet purchased an initial 50,000 shares on December 18 at HK$16.31 each, while Osti acquired 167,000 shares from December 11 to 13 at an average of HK$16.64 each, which increased his holdings by 21 per cent to 949,000 shares or 0.06 per cent.

Buying in gaming stocks picked-up in the past month, with buybacks by MGM China Holdings and most recently in Paradise Entertainment, with chairman Jay Chun picking up one million shares on December 20 at HK$3.20 each. The trade increased his holdings to 629.821 million shares or 61.43 per cent.

The stock closed at HK$3.75 on Friday.

Robert Halili is managing director of Asia Insider