Buying continues climb while Hong Kong directors’ disposals show drop

PUBLISHED : Sunday, 17 April, 2016, 10:29pm
UPDATED : Monday, 16 January, 2017, 10:28am

The buying rose for the third consecutive week while the selling among directors fell for the second week based on filings on the exchange from April 11 to 15. A total of 40 companies recorded 178 purchases worth HK$257 million versus 11 firms with 20 disposals worth HK$54 million. The number of companies and trades on the buying side were up from the previous week’s 38 firms and 161 purchases.

The buy value, however, was down from the previous week’s purchases worth HK$330 million. On the selling side, the number of companies was up from the previous week’s eight firms but the number of trades and value were sharply down from the previous week’s 42 disposals worth HK$83 million.

Meanwhile, the buyback activity fell for the first time in the past four weeks with 14 firms that posted 59 repurchases worth

HK$75 million. The figures were sharply down from the previous week’s 24 firms, 92 trades and

HK$176 million.

Buy signals from directors were strong last week with several stocks that recorded rare insider purchases. Among the stocks that recorded the most bullish signals are CLP Holdings, CK Hutchison, Hing Lee (HK) Holdings and Besunyen Holding.

Chairman Michael Kadoorie recorded his first on-market trades in blue chip utility firm CLP since April 2013 with 1.3 million shares purchased from April 7 to 8 at an average of

HK$70.14 each. The trades increased his holdings to 480.673 million shares or 19.03 per cent of the issued capital. The purchases were made on the back of the 35 per cent rise in the share price since March 2014 from HK$51.95. He previously acquired 22.2 million shares from December 2012 to April 2013 at an average of HK$66.90 each.

Also positive this year is non-executive director John Andrew Harry Leigh with 10,000 shares purchased on March 2 at

HK$69.25 each. The trade boosted his stake to 224.349 million shares or 8.88 per cent. He previously acquired 25,000 shares in June 2014 at HK$63.51 each, 15.2 million shares from December 2012 to April 2013 at an average of HK$66.81 each and 78,000 shares from September 2006 to August 2011 at an average of HK$59.54 each. The blue chip closed at HK$72.10 on Friday.

Non-executive director George Colin Magnus recorded his first on-market trade in conglomerate CK Hutchison since September 2001 with 2,000 shares purchased on April 7 at

HK$99.15 each. The trade increased his holdings to 0.936 million shares or 0.02 per cent of the issued capital. The purchase was made on the back of the 18 per cent drop in the share price since May 2015 from HK$120.18.

The acquisition is the first trade by a director of the company since July 2015 and his first trade since his appointment to his post in 2005. He previously acquired 234,000 shares from March 1998 to September 2001 at HK$36 to HK$70 each or an average of HK$45.85 each. The blue chip closed at HK$99.30 on Friday.

Chairman and chief executive Sung Kai-hing recorded his first on-market trades in home furniture designer and maker Hing Lee since it listed in 2009 with 4.56 million shares bought from April 8 to 13 at 36 HK cents to 41 HK cents each.

The trades, which accounted for 92 per cent of the stock’s trading volume, increased his holdings to 270.667 million shares or 33.58 per cent of the issued capital. The trades were made after the stock fell by as much as 45 per cent from 65 HK cents in June 2015.

The trades are also the first purchases by a director since listing. Sung’s purchase prices were sharply lower than the IPO price of HK$1.02. The counter closed at 41 HK cents on Friday.

Chairman, chief executive an co-founder Zhao Yihong recorded his first on-market trades in therapeutic tea processor and distributor Besunyen since August 2014 with 1.5 million shares purchased from April 8 to 12 at an average of 81 HK cents each.

The trades, which accounted for 20 per cent of the stock’s trading volume, increased his holdings to 868.855 million shares or 55.58 per cent of the issued capital. The purchases were made on the back of the 45 per cent drop in the share price since June 2015 from HK$1.48. He previously acquired 1.02 million shares in August 2014 at an average of 52 HK cents each and sold 81.3 million shares in January 2013 at 58 HK cents to 41 HK cents each or an average of 49.5 HK cents each.

The counter closed at 83 HK cents on Friday.

Robert Halili is managing director of Asia Insider

The buying rose for the third straight week while the selling among directors fell for the second straight week based on filings on the Exchange from April 11 to 15. A total of 40 companies recorded 178 purchases worth HK$257 million versus 11 firms with 20 disposals worth HK$54 million. The number of companies and trades on the buying side were up from the previous week’s 38 firms and 161 purchases. The buy value, however, was down from the previous week’s purchases worth HK$330 million. On the selling side, the number of companies was up from the previous week’s 8 firms but the number of trades and value were sharply down from the previous week’s 42 disposals worth HK$83 million.

Meanwhile, the buyback activity fell for the first time in the past four weeks with 14 companies that posted 59 repurchases worth HK$75 million. The figures were sharply down from the previous week’s 24 firms, 92 trades and HK$176 million.

Buy signals from directors were strong last week with several stocks that recorded rare insider purchases. Among the stocks that recorded the most bullish signals are CLP Holdings, CK Hutchison, Hing Lee Holdings and Besunyen Holding.

Chairman The Hon. Sir Michael Kadoorie recorded his first on-market trades in blue chip utility firm CLP Holdings since April 2013 with 1.3 million shares purchased from April 7 to 8 at an average of HK$70.14 each. The trades increased his holdings to 480.673 million shares or 19.03 per cent of the issued capital. The purchases were made on the back of the 35 per cent rise in the share price since March 2014 from HK$51.95. He previously acquired 22.2 million shares from December 2012 to April 2013 at an average of HK$66.90 each. Also positive this year is Non-Executive Director John Andrew Harry Leigh with 10,000 shares purchased on March 2 at HK$69.25 each. The trade boosted his stake to 224.349 million shares or 8.88 per cent. He previously acquired 25,000 shares in June 2014 at HK$63.51 each, 15.2 million shares from December 2012 to April 2013 at an average of HK$66.81 each and 78,000 shares from September 2006 to August 2011 at an average of HK$59.54 each. The blue chip closed at HK$72.10 on Friday.

Non-Executive Director George Colin Magnus recorded his first on-market trade in conglomerate CK Hutchison Holdings since September 2001 with 2,000 shares purchased on April 7 at HK$99.15 each. The trade increased his holdings to 0.936 million shares or 0.02 per cent of the issued capital. The purchase was made on the back of the 18 per cent drop in the share price since May 2015 from HK$120.18. The acquisition by Mr. Magnus is the first trade by a director of the Company since July 2015 and his first trade since his appointment to his post in 2005. He previously acquired 234,000 shares from March 1998 to September 2001 at HK$36.00 to HK$70.00 each or an average of HK$45.85 each. The blue chip closed at HK$99.30 on Friday.

Chairman & CEO Sung Kai Hing recorded his first on-market trades in home furniture designer and manufacturer Hing Lee (HK) Holdings since the stock was listed in 2009 with 4.56 million shares purchased from April 8 to 13 at HK$0.36 to HK$0.41 each or an average of HK$0.38 each [AI SCORE 5.5]. The trades, which accounted for 92 per cent of the stock’s trading volume, increased his holdings to 270.667 million shares or 33.58 per cent of the issued capital. The trades were made after the stock fell by as much as 45 per cent from HK$0.65 in June 2015. The trades by the Chairman are also the first purchases by a director of the Company since listing. The Chairman’s purchase prices were sharply lower than the IPO price of HK$1.02. The counter closed at HK$0.41 on Friday.

Chairman & CEO & Co-founder Zhao Yihong recorded his first on-market trades in therapeutic tea processor and distributor Besunyen Holdings since August 2014 with 1.5 million shares purchased from April 8 to 12 at an average of HK$0.81 each. The trades, which accounted for 20 per cent of the stock’s trading volume, increased his holdings to 868.855 million shares or 55.58 per cent of the issued capital. The purchases were made on the back of the 45 per cent drop in the share price since June 2015 from HK$1.48. He previously acquired 1.02 million shares in August 2014 at an average of HK$0.52 each and sold 81.3 million shares in January 2013 at 58 cents to 41 cents each or an average of 49.5 cents each. Prior to those sales, the Chairman acquired 2.5 million shares in January 2012 at 84 cents each and 6.2 million shares in March 2011 at an average of HK$2.49 each. Investors should note that the Company bought back 3.6 million shares from January 28 to February 1 at HK$0.79 each. The Group previously acquired 2.45 million shares from December 8 to 18, 2015 at HK$0.95 each and 115.3 million shares from March to December 2012 at an average of HK$0.69 each. The counter closed at HK$0.83 on Friday.