Want Want taps decline in share price with buy-back

Selling activity picks up steam as conflicting trades are recorded in LCD maker Truly

PUBLISHED : Monday, 22 July, 2013, 12:00am
UPDATED : Monday, 22 July, 2013, 5:34am

Buying by directors slowed last week whereas selling picked up, based on filings made to the stock exchange.

A total of 39 companies reported 210 purchases worth HK$246 million, compared with 11 companies that reported 46 disposals worth HK$38 million. The buy figures were sharply down from the previous week's 53 companies that reported 286 purchases worth HK$864 million, while sales were up from six companies that reported 12 disposals worth HK$36 million.

Buy-back activity fell, with 14 companies posting 56 repurchases worth HK$188 million, down from the previous week's 19 companies that reported 113 trades worth HK$318 million.

Among the companies that bought back following declines in their share prices were Want Want China, Hopson Development, Vinda International and Truly International.

Mainland food and beverage producer Want Want acquired more shares after its stock fell 6 per cent on July 11, with two million shares purchased on July 19 at HK$10.18 each. It previously acquired two million shares on June 21 at HK$10.04 each.

The repurchases in the past two months were made on the back of a drop in the share price since April from HK$12.38.

The stock closed at HK$10.16 on Friday.

Mainland property play Hopson bought back for the first time since October 2011, with 4.84 million shares purchased from July 17 to 19 at an average of HK$9.15 each. The trades, which accounted for 44 per cent of the stock's trading volume, were made on the back of a 47 per cent drop in the share price since January from HK$17.20.

Despite the fall in the share price, the counter is still up since January 2012 from HK$3.66.

The group previously acquired 16.36 million shares from September to October 2011 at an average of HK$4.34 each, and 25.46 million shares in February 2010 at an average of HK$10.58 each. Investors should note that chief financial officer Zhang Yi purchased 100,000 shares on April 2 at HK$10.90 each, which increased his holdings to 0.01 per cent of the issued capital.

The stock closed at HK$8.95 on Friday.

Personal care product manufacturer Vinda bought back 500,000 shares on July 19 at HK$7.36 each. The trade was made on the back of a 36 per cent drop in the share price since February from HK$11.48.

Vinda previously acquired 661,000 shares in August last year at HK$12.03 each. The repurchases since 2012 are its first buy-backs since the stock was listed in July 2007.

Value Partners sold 2.2 million Vinda shares on July 3 at HK$8.40 each, which reduced its stake to 6.98 per cent.

It previously acquired 24 million Vinda shares from December 19 last year to January 3 at HK$10.21 to HK$11.02 each and reported an initial filing on December 18 last year of 1.8 million shares at HK$10.21 each, which raised its interest to 5.03 per cent.

The stock closed at HK$7.46 on Friday.

There were conflicting trades in liquid-crystal display maker Truly this month, with a buy-back by the company and a purchase by executive director Li Jianhua against sales by chief operating officer James Wong.

The company bought back 4.9 million shares on July 19 at HK$3.48 each, after previously acquiring 18.56 million shares on June 25 at HK$3.39 each. The repurchases were made on the back of a drop in the share price since May from HK$5.20.

Prior to the buy-backs, the company acquired 3.26 million shares from September to October last year at an average of HK$1.13 each and 8,000 shares in the fourth quarter of 2000 at an average of HK$1.63 each.

Li, on the other hand, purchased 50,000 shares on July 12 at HK$3.88 each, which boosted his stake to 0.54 per cent. He previously acquired 1.1 million shares from June 20 to 21 at an average of HK$4.03 each.

On the sales side, Wong unloaded three million shares from July 15 to 17 at an average of HK$3.98 each, which reduced his holdings to 0.13 per cent. A portion of the sales was made at a profit based on the 2.3 million shares that he acquired through options on June 25 at HK$2.11 each.

The stock closed at HK$3.46 on Friday.

Robert Halili is managing director of Asia Insider