Short trading week fails to dampen directors' activity
Acquisitions seen in Lifestyle and Tao Heung while Hilong finance chief reduces his holdings
Director activity surged in the holiday-shortened week to October 4 with 195 transactions worth HK$502 million, based on filings on the stock exchange. The figures were up from the previous week's five-day total of 180 trades worth HK$184 million. A total of 26 companies recorded 115 purchases worth HK$192 million against 18 firms with 80 disposals worth HK$310 million.
Buy-back activity, on the other hand, was flat with eight companies that posted 24 repurchases worth HK$55 million. The number of companies and value were near the previous week's eight firms and HK$52 million, but the number of trades was sharply down from 44.
There were several significant trades with buy-backs in Lifestyle International and insider purchases in Tao Heung and ChinaVision Media, while on the negative side, the chief financial officer of Hilong recorded his first sales after the stock rebounded 23 per cent.
Department store operator Lifestyle resumed buying back after the stock fell 13 per cent from HK$18.38 on August 1 with 1.57 million shares purchased from September 30 to October 4 at an average of HK$15.99 each.
Investors should note that the stock rose by an average of 29 per cent six months after the group bought shares based on 113 filings from September 2008 to August 2012.
The counter closed at HK$15.90 on Friday.
Chairman Chung Wai-ping recorded his highest acquisition price in Tao Heung since he started buying the restaurant operator's shares in 2007 with 200,000 shares purchased from September 25 to 30 at an average of HK$5.68 each.
The trades increased his holdings to 38.28 per cent of the issued capital. The purchases were made on the back of the 25 per cent rise in the share price since April from HK$4.55.
He previously acquired 155,000 shares from March 22 to 28 at an average of HK$4.41 each, 125,000 shares in January at an average of HK$4.39 each and a net 2.1 million shares from January to December 2012 at an average of HK$3.67 each.
The recent purchases bode well for shareholders as the stock rose by an average of 34 per cent six months after Chung bought shares based on 103 acquisitions since 2007.
The stock closed at HK$5.80 on Friday.
Chairman Dong Ping resumed buying shares of media firm ChinaVision at a sharply higher price with 2.2 million shares purchased from September 27 to 30 at an average of 49.7 HK cents each. The trades raised his stake to 23.19 per cent. The acquisitions were made on the back of the 25 per cent rebound in the share price since August from 40 HK cents.
He previously acquired 6.5 million shares from May 2 to 21 at an average of 32 HK cents each, 102.2 million shares from October to December 2012 at an average of 27.5 HK cents each, and 2.5 million shares from May to June 2012 at an average of 29 HK cents each.
Investors should note that the stock rose by an average of 15 per cent three months after Dong bought shares based on 101 purchases since 2009.
The counter closed at 48 HK cents on Friday.
Ji Min recorded his first sales in oil field equipment and services provider Hilong since the stock was listed in April 2011 with 460,000 shares sold from October 2 to 3 at an average of HK$4.55 each.
The trades reduced his holdings to 0.04 per cent. A portion of the sales was made at a profit based on the 160,000 shares he acquired through options on September 30 at HK$2.60 each.
The disposals were made on the back of the 23 per cent rebound in the share price since September from HK$3.71. The counter is also sharply up since October 2011 from HK$1.06.
The stock closed at HK$4.74 on Friday.
Robert Halili is managing director of Asia Insider