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PUBLISHED : Monday, 31 March, 2014, 5:27am
UPDATED : Monday, 31 March, 2014, 5:27am

Earnings reports spur surge in deals, with buyers at the fore

Transactions rise for second week, swelling to HK$793m, with Lee Shau-kee the top spender

Results announcements results helped boost insider activity for the second straight week, with 235 transactions worth HK$793 million, filings to the stock exchange show.

The figures were sharply up from the previous week's 141 trades worth HK$237 million. Thirty eight companies recorded 179 purchases worth HK$485 million versus 13 firms with 56 disposals at HK$308 million. Aside from directors' trades, buyback activity was high for the second straight week with 16 companies posting 69 repurchases worth HK$150 million. The figures were consistent with the previous week's 14 firms, 68 trades and HK$177 million.

There were several significant buyback and director trades following earnings reports. Hengan International bought back for the first time since 2000, while Shandong Chenming Paper resumed purchases after the stock rebounded 21 per cent.

However, the head of Sinosoft Technology unloaded heavily after the stock rose by 90 per cent. The sale coincided with the poor initial public offering performance of King Digital Entertainment.

Personal hygiene products manufacturer Hengan International recorded its first buyback since 2000, with 500,000 shares at HK$79.49 each on Friday. The stock closed at HK$80 on Friday.

Paper products manufacturer Shandong Chenming Paper resumed buying back after the stock rebounded 21 per cent from HK$2.89 on March 17, with 9.4 million shares purchased on Thursday and Friday at an average of HK$3.49 each. The shares closed at HK$3.46 on Friday.

Henderson Land chairman Lee Shau-kee was the top buyer by value last week with 6.08 million shares purchased, for HK$256 million, from March 21 to 24 at an average of HK$42.17 each. The stock ended at HK$44 on Friday.

Chairman Ji Wei resumed buying shares of electronic products maker Wasion Group after the firm announced a 24 per cent rise in profit. Ji bought 2.8 million shares from Monday to Thursday at an average of HK$4.74 each. The stock closed at HK$5.42 on Friday.

Chairwoman and chief executive Xin Yingmei took profits on the shares of software firm Sinosoft Technology she bought in November last year, with 9.426 million shares sold from March 19 to 24 at HK$3.47 each. The shares finished at HK$2.83 on Friday.

Robert Halili is managing director of Asia Insider Limited

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