Directors go on buying spree before Easter
Purchases recorded in SmarTone and K&P while sell-side activity slows
Directors ramped up their buying before the Easter break while sellers were quiet during the holiday-shortened week.
A total of 34 companies recorded 177 purchases worth HK$523 million, compared with 14 firms with 32 disposals worth HK$41 million. The buy figures were up from the previous week's 32 companies, 140 purchases and HK$225 million. On the selling side, the number of firms was consistent with the previous week's 16 companies, but the number of trades and value were down from 60 disposals worth HK$249 million.
Buy-back activity was high, with 13 companies that posted 59 repurchases worth HK$179 million. The figures were consistent with the previous week's 17 firms, 76 trades and HK$263 million.
Among the trades last week were buy-backs in SmarTone Telecommunications, a director purchase in K&P International and insider sales in Kerry Properties and China Precious Metal Resources.
SmarTone resumed buying back after the stock fell 11 per cent from March 5, with one million shares purchased on April 16 at HK$8.24 each. The group acquired 1.59 million shares from January 8 to February 18 at an average of HK$8.75 each.
Investors should note that the stock rose an average of 5.7 per cent three months after the firm bought shares. The stock closed at HK$8.35 on Thursday.
Chairman Lai Pei-wor picked up where he left off in electronic and electronic components manufacturer K&P in December last year, buying 1.66 million shares from April 11 to 14 at an average of 74 HK cents each. The trades raised his stake to 43.02 per cent of the issued capital.
Last year, he acquired 2.6 million shares in December at an average of 69 HK cents each and 1.07 million shares in January at 62 HK cents each.
Investors should note that the stock rose an average of 11 per cent six months after Lai bought shares. It closed at 75 HK cents on Thursday.
Executive director Bryan Gaw recorded his first trade in Kerry since June 2013, selling 50,000 shares on April 11 at HK$27 each. The trade reduced his holdings to 0.66 per cent. The sale was made on the back of the 19 per cent rebound in the share price since March.
The disposal was made at a profit, based on the 100,000 shares he acquired in November last year at HK$17.58 each. He sold 100,000 shares from January to June last year at an average of HK$34.25 each.
The stock closed at HK$26.65 on Thursday.
Executive director Chang Yim-yang recorded his first sale in China Precious Metal since his appointment in June 2008 with 20 million shares sold on April 10 at 86 HK cents each. The trade reduced his holdings to 15.53 per cent. The sale was made on the back of the 25 per cent drop in the share price since February from HK$1.15.
He bought 12.6 million shares on January 10 at HK$1.10 each and 55.5 million shares in November 2013 at HK$1.17 each.
The sentiment is not entirely negative as chief executive Zhang Shuguang bought 3.4 million shares from March 31 to April 2 at an average of 92 HK cents each, which boosted his stake to 0.78 per cent. Also positive is non-executive director Li Xianghong with 12 million shares bought on April 2 at 94 HK cents each.
The counter closed at 83 HK cents on Thursday.
Robert Halili is the managing director of Asia Insider