Value of buy-backs down sharply

20 companies in 78 disposals worth HK$128m against buying by directors worth HK$118m

PUBLISHED : Monday, 02 December, 2013, 5:19am
UPDATED : Monday, 02 December, 2013, 6:03am

Buying of their company shares by directors slowed last week but selling remained high, based on filings made to the stock exchange for the last week of November.

A total of 19 companies reported 103 purchases by directors worth HK$118 million; versus 20 companies that reported 78 disposals worth HK$128 million.

The buy figures were down from the previous week's 23 companies and 113 purchases valued at HK$272 million, while on the sell-side the number of companies and trades were consistent with the previous week's 18 companies and 75 disposals, although the sell value was sharply down on the previous week's sales worth HK$478 million.

The volume of buy-back activity among listed firms rose, with 12 companies posting 40 share buy-backs, up from the previous week's nine companies and 32 transactions. The value amounted to just HK$69 million, sharply lower on the previous week's repurchases worth HK$432 million.

Gaming firm MGM China resumed buying back at higher than its previous purchase prices; while retailer Springland International recorded its first buy-backs since listing in 2010. On the directors' side, there were insider buys in pharmaceutical plays Kingworld Medicines and Lijun Pharmaceutical.

MGM China resumed buying with 872,000 shares purchased on November 28 at HK$28.16 each. The group previously acquired 1.49 million shares from March 1 to September 16 at HK$18.90 to HK$24.45 each.

The stock closed at HK$27.60 on Friday.

Department stores and supermarkets operator Springland bought back its own shares for the first time since listing in October 2010, with 450,000 shares purchased on November 27 at HK$3.96 each.

Springland's stock closed at HK$3.99 on Friday.

Executive director Zhou Xuhua acquired shares of Kingworld, with 124,000 shares purchased from November 26 to 27 at an average of HK$1.15.

Kingworld stock closed at HK$1.14 on Friday.

Chief executive Qu Jiguang recorded his first on-market trades in Lijun since 2008, with 5.2 million shares purchased from November 15 to 26 at an average of HK$2.07 each.

Lijun International's shares closed at HK$2.12 on Friday.

Robert Halili is managing director of Asia Insider