Buyback activity on Hong Kong exchange falls for first time in four weeks
The buying slowed after rising for three straight weeks while the selling among directors rose for the second straight week based on filings on the Hong Kong exchange in the fourth week of November. Buyers outweighed sellers with 33 companies that recorded 163 purchases worth HK$323 million versus 15 firms with 56 disposals worth HK$45 million. The buy figures were slightly down from the previous week’s 34 companies, 187 purchases and HK$355 million. On the selling side, the number of firms and trades were up from the previous week’s 13 companies and 38 disposals. The sell value, however, was slightly down from the previous week’s disposals worth HK$52 million.
Meanwhile, the buyback activity fell for the first time in the past four weeks with 20 companies that posted 112 repurchases worth HK$1.413 billion. The figures were down from the previous week’s 25 firms, 135 trades and HK$1.967 million.
There was bullish activity last week with several stocks that recorded purchases at higher prices with buybacks in Man Wah Holdings and insider buys in China Primary Energy and China Health Group. Not all directors resumed buying at a higher price as a director of Smartone Telecommunications bought shares at lower than his initial purchase price in December last year. On the negative side, a director of Value Convergence Holdings sold for the first time since September last year after the stock more than doubled to over HK$3 a share. Lastly, the chairman of Crocodile Garments took profits on the shares he acquired in August after the counter rose by more than 38 per cent.
Mainland furniture manufacturer Man Wah Holdings picked up where it left off in April with 31.76 million shares purchased from November 21 to 24 at HK$5.26 to HK$5.73 each or an average of HK$5.58 each. The trades, which accounted for 45 per cent of the stock’s trading volume, were made after the stock rebounded by as much as 18 per cent from HK$4.87 on November 11. Despite the rebound in the share price, the counter is still down since July from HK$6.18. The buybacks were also made after the company announced on November 16 a 43.9 per cent gain in first half profit to HK$883.585 million. The group previously acquired 68.9 million shares from February 22 to April 1 at HK$4.36 to HK$4.97 each or an average of HK$4.61 each (adjusted for 1 for 1 bonus issue on July 18). Prior to the buybacks this year, the company acquired 271 million shares from November 2011 to March 2015 at HK$1.39 to HK$7.30 each or an average of HK$2.74 each. Investors should note that the stock rose by an average of 16 per cent three months after the group bought shares based on 137 filings since 2011. The stock recorded a price gain three months after on 75 per cent of those filings. The stock closed at HK$5.82 on Friday.
China Primary Energy Holdings Limited (8117)