Market sees 2nd week of rising purchases
Despite more buying, bulk of significant trades were disposals with insider sales at 3 firms
The buying rose for the second straight week with 23 firms that recorded 87 purchases worth HK$68 million based on filings on the stock exchange from August 19 to 23. The figures were sharply up from the previous week's 4-day totals of 12 firms, 58 purchases, and HK$21 million. The selling, on the other hand, rose for the third week with 12 companies that recorded 40 disposals worth HK$57.8 million. The figures were up from the previous week's seven firms, 23 disposals, and HK$50.2 million.
Aside from directors, the buyback activity rose for the second week with 11 companies that posted 37 repurchases worth HK$99.1 million. The figures were sharply up from the previous week's seven firms, 16 trades, and HK$6.3 million.
Although buyers dominated the trading, the bulk of the significant trades were disposals with insider sales in Tencent Holdings, Convenience Retail Asia, and Bright Smart Securities.
Non-executive director Iain Ferguson Bruce recorded his first on-market trade in blue chip internet play Tencent Holdings since October 2012 with 10,000 shares sold on August 19 at HK$372 each. The trade reduced his holdings by 11 per cent to 82,000 shares.
A portion of the sale was made at a huge profit based on the 4,000 shares that he acquired via options on March 22 at HK$25 each. The disposal was made on the back of the 57 per cent rise in the share price since April from HK$237. He previously sold 13,000 shares from July to October 2012 at an average of HK$248 each and 15,000 shares from October 2010 to January 2011 at an average of HK$177 each.
Although the recent sales may indicate a negative signal for the stock, the counter tends to rise whenever directors unload shares of the company. In Ferguson's case, the stock rose by an average of 8.5 per cent six months after he sold shares based on the disposals he made from 2010 to 2012. The blue chip closed at HK$355 on Friday.
Chief operating officer Pak Chi-kin recorded his first trade in convenience store operator Convenience Retail Asia since March 2012 with 194,000 shares sold on August 20 at HK$5.85 each. The trade reduced his holdings by 6 per cent to 3.206 million shares or 0.43 per cent of the issued capital.
The sale was made on the back of the 13 per cent rebound in the share price since the last week in March from HK$5.20. The stock is also sharply up since August 2012 from HK$4.29. The disposal was made at a profit based on the 600,000 shares that he acquired in April at HK$3.39 each. Prior to his trades this year, the chief executive sold 300,000 shares in March 2012 at HK$3.78 each. The stock closed below Pak's last sale price to HK$5.32 on Friday.
Chief executive Chan Kai-fung and non-executive directors Yu Yun-kong and Szeto Wai-sun unloaded shares of brokerage firm Bright Smart Securities & Commodities Group this month with a combined 486,000 shares sold from August 1 to 20 at an average of HK$1.21 each.
Chan sold 300,000 shares on August 20 at HK$1.21 each, which reduced his holdings by 22 per cent to 1.034 million shares or 0.1 per cent. The sale was made at a profit based on the 500,000 shares that he acquired via options on August 16 at 98 HK cents each. The disposal was also made on the back of the 41 per cent rise in the share price since May from 86 HK cents. He previously sold 2.07 million shares on January 18 at 95 KK cents each and acquired an initial 450,000 shares from June to July 2012 at an average of 60 HK cents each.
Yu unloaded 70,000 shares on August 20 at HK$1.23 each, which lowered his stake by 10 per cent to 649,000 shares or 0.06 per cent. The disposal was made at a profit based on the 389,000 shares that he acquired via options on August 2 at 67 HK cents each. He previously sold 70,000 shares on July 17 at HK$1.06 each.
Lastly, Szeto sold 28,000 shares on August 1 and a further 88,000 shares on August 19 at an average of HK$1.18 each, which reduced his holdings by 17 per cent to 573,000 shares or 0.06 per cent. The stock closed at HK$1.21 on Friday.