INSIDER TRADING

Company directors emerge as active buyers following share price pullback

Purchasing activity by company directors up for a third straight week

PUBLISHED : Monday, 25 January, 2016, 4:45am
UPDATED : Monday, 25 January, 2016, 4:45am

The buying by directors was high for the third straight week with 76 companies recording 453 purchases worth HK$868 million, according to stock exchange fillings for the third week of January.

The figures were consistent with the previous week’s 77 companies making HK$729 million worth of purchases. The selling, on the other hand, remained low with 11 companies recording 42 disposals worth HK$69 million. The figures were not far off from the previous week’s nine companies making 43 disposals for HK$75 million.

Aside from directors, the buyback activity rose last week with 52 companies posting 303 repurchases worth HK$1.374 billion. The figures were up from the previous week’s 49 companies making HK$1.128 billion worth of purchases.

The bulk of the acquisitions last week were in stocks that had seen significant price. These include Pou Sheng International, Beijing Enterprises Water Group and Fosun International.

Footwear manufacturer and sportswear retailer Pou Sheng International bought back for the first time since November 2011 with 53.2 million shares purchased from January 15 to 22 at an average of HK$1.43 each. The trades, which accounted for 30 per cent of the stock’s trading volume, were made on the back of the 23 per cent drop in the share price since the last week of December 2015 from HK$1.86. Despite the fall in the share price, the counter is still up since up from its level in April of HK$0.48. The group previously acquired 36.8 million shares from October to November 2011 at an average of HK$1.05 each. The stock closed at HK$1.54 on Friday.

There were buybacks and purchases by CEO Hu Xiaoyong and Executive Directors Zhou Min, Li Haifeng and Li Li in sewage treatment and water supply services provider Beijing Enterprises Water Group with a combined 12.1 million shares purchased from January 11 to 22 at HK$4.57 to HK$3.99 each, or an average of HK$4.47 apiece. The trades were made following a 32 per cent drop in the share price since October 2015 from HK$6.59. Despite the fall in the share price, the share is still up from February’s level of HK$4.22. Beijing Enterprises Water Group bought back for the first time since listing in April 1993 with 11.4 million shares purchased from January 13 to 22 at an average of HK$4.48 each. On the directors’ side, CEO Hu Xiaoyong purchased 500,000 shares on January 12 at HK$4.38 each. The trade increased his holdings to 374.937 million shares or 4.3 per cent of the issued capital. He previously sold 2.6 million shares in May 2013 at an average of HK$2.91 each. Executive Director Zhou Min, on the other hand, bought 100,000 shares on January 12 at HK$4.40 each, which boosted his stake to 364.076 million shares or 4.17 per cent. He previously sold 2.6 million shares in May 2013 at HK$2.91 each. Meanwhile, Executive Director Li Haifeng purchased 80,000 shares on January 11 at HK$4.51 each, which increased his holdings to 25.080 million shares or 0.29 per cent. He previously sold 2.2 million shares in September 2015 via options-related sales at an average of HK$5.24 each. Lastly, Executive Director Li Li recorded his first trade since his appointment in February 2014 with 10,000 shares purchased on January 11 at HK$4.52 each. The trade boosted his stake to 19.210 million shares or 0.22 per cent. The stock closed at HK$4.28 on Friday.

Chairman Guo Guang Chang and Vice President Xu Xiao Liang acquired shares of pharmaceutical & healthcare products manufacturer and property developer Fosun International with a combined 7.8 million shares purchased from January 11 to 18 at an average of HK$10.46 each. The trades, which accounted for 11 per cent of the stock’s trading volume, were made following a 35 per cent decline in the share price since August 2015 from HK$16.18. Chairman Guo Guang Chang recorded his first on-market trades since July 2015, purchasing 7.7 million shares from January 11 to 18 at HK$10.46 each. The trades increased his holdings to 6.152 billion shares or 71.46 per cent of the issued capital. He previously acquired 25.5 million shares in July 2015 at HK$14.59 each and 53.6 million shares from April to July 2011 at an average of HK$6.09 each. Vice President Xu Xiao Liang, on the other hand, recorded his first on-market trade since his appointment in July 2015 with 100,000 shares purchased on January 15 at HK$10.38 each. The trade boosted his stake to 10.290 million shares or 0.12 per cent. The stock closed at HK$9.96 on Friday.