STOCK MARKET
The Insider
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Value of director transactions slumps in fourth week of August

Nineteen firms record 86 purchases worth HK$58m, from 80 purchases by 22 firms, worth HK$200m the previous week

PUBLISHED : Sunday, 28 August, 2016, 5:13pm
UPDATED : Monday, 16 January, 2017, 10:28am

The rise in buying by directors for the first time in the past six weeks was short-lived, as purchase activity fell in the fourth week of August, with 19 companies recording 86 purchases worth HK$58 million, according to filings with the Hong Kong exchange.

The number of purchases was up from the previous week’s 80 acquisitions, but the number of companies and buy value were down from 22 firms and HK$200 million.

Selling, on the other hand, rebounded with nine companies recording 30 disposals worth HK$182 million. The figures were sharply up from five firms, 13 disposals and HK$35 million.

Meanwhile, buy-back activity rose for a third week with 14 companies posting 74 repurchases worth HK$543 million. The value was down from the previous week’s turnover of HK$718 million, but the number of firms and trades were sharply up from seven companies and 46 repurchases.

There were several significant trades last week with rare buy-backs in Regal Hotels International Holdings, insider purchases in Gameone Holdings and Geely Automobile Holdings as well as sales in KPM Holding and Glory Flame Holdings.

Hotel operator Regal bought back for the first time since July 2014 with 140,000 shares purchased from August 24 to 25 at HK$3.99 each. The trades were made on the back of the 21 per cent rebound in the share price since May from HK$3.29.

The group previously acquired 77.4 million shares from April 2012 to July 2014 at an average of HK$3.95 each and nearly 600 million shares from October 2005 to January 2011 at an average of 55 HK cents each.

Also positive this year is chairman and chief executive Lo Yuk-sui with 3.6 million shares bought from June 10 to July 19 at an average of HK$3.65 each, which increased his holdings to 67.42 per cent of the issued capital. He previously acquired 832,000 shares from March 23 to April 29 at an average of HK$3.75 each and 18.2 million shares throughout last year at an average of HK$4.50 each.

The stock closed at HK$4.17 on Friday.

Chairman Sze Yan-ngai recorded his first trades in integrated game developer Gameone since the stock was listed in January with 368,000 shares bought from August 16 to 24 at 76 HK cents each. The trades increased his holdings to 18 per cent of the issued capital.

The purchases were made on the back of the 87 per cent drop in the share price since May from HK$5.86. The counter is also down since February from HK$7.65. Sze’s purchase price was lower than the initial public offering prices of HK$1 to HK$1.50. The counter closed at 75 HK cents on Friday.

Vice-chairman Daniel Li Donghui recorded his first trade in carmaker Geely since his appointment in July with two million shares bought on August 23 at HK$5.79 each. The trade increased his holdings to 0.1 per cent of the issued capital. The acquisition was made on the back of the 109 per cent rise in the share price since February from HK$2.77.

Also positive this year is chairman Li Shufu with 8.8 million shares bought on January 7 at HK$3.49 each, which boosted his stake to 42.98 per cent. He previously acquired six million shares from July 13 to 15 last year at HK$3.59 each and 17 million shares from November to December 2014 at HK$2.98 each.

The stock closed at HK$6.07 on Friday.

Chairman Kelvin Tan Thiam Kiat recorded the first corporate shareholder trades in signage and related product service provider KPM since the stock was listed in July last year with 163.6 million shares sold from August 19 to 23 at an average of 61 HK cents each. The trades reduced his holdings to 60.64 per cent of the issued capital.

The disposals were made on the back of the 29 per cent drop in the share price since April from 86 HK cents. Despite the fall in the share price, the counter is still up since January from 10 HK cents. The counter closed at 60 HK cents on Friday.

Chairman and chief executive Pei Wing-fu resumed selling shares in concrete demolition service provider Glory Flame at a lower price with 18.3 million shares sold from August 22 to 23 at 48 HK cents each. The trades reduced his holdings to 2.53 per cent of the issued capital.

The disposals were made on the back of the 27 per cent drop in the share price since July from 65 HK cents. He previously sold 95.3 million shares from January 6 to July 5 at an average of 94 HK cents each and 114 million shares from May to November last year at an average of HK$1.77 each.

The counter closed at 48 HK cents on Friday.

Robert Halili is managing director of Asia Insider

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