THE INSIDER
The Insider
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Buying by Hong Kong directors high for 4th straight week

PUBLISHED : Sunday, 13 December, 2015, 1:55pm
UPDATED : Monday, 16 January, 2017, 10:28am

The buying by directors was high for the fourth straight week with 42 companies that recorded 245 purchases worth HK$342 million based on filings on the Exchange in the second week of December. The figures were up from the previous week’s 39 firms, 217 purchases and HK$282 million. The selling, on the other hand, was low for the first time in the past four weeks with 15 companies that recorded 33 disposals worth HK$18.9 million. The figures were down from the previous week’s 16 firms, 69 disposals and HK$4.0 billion.

Aside from directors, the buyback activity rose with 25 companies that posted 125 repurchases worth HK$182 million. The figures were up from the previous week’s 21 firms, 119 trades and HK$175 million.

There were several rare acquisitions last week following the sharp fall in share prices with buybacks by Luk Fook Holdings and insider buys in China Gas Holdings, Chu Kong Petroleum, SmarTone Telecommunications and Brightoil Petroleum.

Gold jewellery retailer and wholesaler Luk Fook Holdings bought back for the first time since listing in 1997 with 146,000 shares purchased on December 11 at HK$16.12 each. The acquisition was made on the back of the 46 per cent drop in the share price since January from HK$29.70. The counter is also sharply down since July 2011 from HK$41.30.

Also positive this month is Silchester International Investors LLP with a purchase-related filing on December 1 of 694,000 shares at HK$17.38 each, which increased its holdings to 35.853 million shares or 6.09 per cent of the issued capital. The group previously reported an initial filing on November 11 of 500,000 shares at HK$20.00 each, which raised its interest to 5.04 per cent. Overall, Silchester’s stake is up by 21 per cent since that initial filing in November. The stock closed at HK$16.34 on Friday.

Chairman & Managing Director Liu Ming Hui recorded his first trades in natural gas pipeline infrastructure operator China Gas Holdings since December 2014 with 1.65 million shares purchased from December 3 to 9 at an average of HK$10.54 each. The trades increased his holdings to 1.086 billion shares or 21.89 per cent of the issued capital. The purchases were made after the stock fell by 19 per cent from HK$13.02 on October 23.

The stock is also down since April from HK$14.32. He previously acquired 1.46 million shares in December 2014 at HK$12.65 each, 100,000 shares in January 2014 at HK$10.47 each and 24.4 million shares from January 2007 to December 2010 at HK$0.48 to HK$3.84 each or an average of HK$2.10 each.

Investors should note that there were buybacks by China Gas Holdings earlier this year with 49.8 million shares purchased from January to October at HK$12.56 to HK$10.36 each or an average of HK$11.36 each. Aside from those trades, the Group acquired 6.6 million shares in December 2014 at an average of HK$12.22 each. The repurchases since December 2014 are the Company’s first buybacks since listing in 1995. The stock closed at HK$10.18 on Friday.

Chairman Chen Chang recorded his first transaction in oil and gas steel pipes manufacturer Chu Kong Petroleum since September 2011 with 840,000 shares purchased on December 9 at HK$1.19 each. The trade increased his holdings to 704.389 million shares or 69.66 per cent of the issued capital. The acquisition was made on the back of the 53 per cent drop in the share price since May from HK$2.53. The counter is also sharply down since January 2013 from HK$4.18. He previously acquired 1.6 million shares in September 2011 at HK$2.25 to HK$1.61 each or an average of HK$2.05 each and 1.9 million shares on the stock’s trading debut in February 2010 at HK$4.48 each. The stock closed at HK$1.16 on Friday.

Deputy Chairman Allen Fung Yuk Lun recorded his first trade in telecom services provider SmarTone Telecommunications since his appointment in December 2013 with an initial 168,000 shares purchased on December 4 at HK$11.40 each. The shares bought represented 0.02 per cent of the issued capital. The acquisition was made on the back of the 28 per cent drop in the share price since August from HK$15.86. The stock closed at HK$11.94 on Friday.

Chairman & CEO Sit Kwong Lam picked up where he left off in oil & gas exploration firm Brightoil Petroleum (Holdings) in July with 880,000 shares purchased on December 4 at HK$2.28 each. The trade increased his holdings to 7.403 billion shares or 72.89 per cent of the issued capital. The acquisition was made on the back of the 32 per cent drop in the share price since October from HK$3.37.

He previously acquired 6.3 million shares from July 6 to 8 at HK$2.36 each and 35.23 million shares from May 12 to 19 at HK$2.76 each. Prior to his purchases this year, the Chairman acquired 34.2 million shares from March to April 2013 at an average of HK$1.45 each. The stock closed at HK$2.29 on Friday.

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