Buying surges as property tycoons snap up shares

Heavy purchases by chiefs of Henderson Land, Wheelock and Midland saw sharp rise in activity

PUBLISHED : Monday, 07 April, 2014, 4:38am
UPDATED : Monday, 07 April, 2014, 4:38am

Buying surged for the third consecutive week while selling among directors fell based on filings on the Exchange from March 31 to April 4. A total of 57 companies recorded 273 director purchases worth HK$608 million versus nine firms with 40 disposals worth HK$113 million.

The buy figures were sharply up from the previous week's 38 companies, 179 purchases, and HK$485 million. The sales, on the other hand, were down from the previous week's 13 firms, 56 disposals, and HK$308 million. The huge buy value last week was due to heavy buying by directors of property-related stocks with acquisitions in Henderson Land, Wheelock, Midland Realty and Country Garden.

Tycoon Lee Shau-kee has acquired 15.6 million shares worth HK$673 million in Henderson Land since the property developer announced its year-end results last month. The purchases were made from March 21 to 31 at HK$41.94 to HK$45.15 per share or an average of HK$43.09 each. The trades increased his holdings to 1.79 billion shares or 66.35 per cent of the issued capital. The stock closed at HK$46.60 on Friday.

Chairman Peter Woo Kwong-ching resumed buying shares of property developer Wheelock after the stock fell by 24 per cent from his acquisition price last year with 336,000 shares purchased on March 31 at HK$30.13 each. The trade increased his holdings to 1.226 billion shares or 60.35 per cent. The stock rose by an average of 7 per cent three months after he bought shares based on 313 acquisitions since 2011. The stock closed at HK$32.70 on Friday.

Chairman Freddie Wong Kin-yip resumed buying shares of property broker Midland Realty at a higher price with 9.16 million shares purchased from March 31 to April 2 at an average of HK$4.14 each. The trades, which accounted for 47 per cent of the stock's trading volume, increased his holdings to 129.311 million shares or 18.01 per cent.

The stock rose by an average of 5 per cent three months after he bought shares based on 134 acquisitions since 2008. The stock closed at HK$3.91 on Friday.

Four directors moved in to support the share price of property developer Country Garden after the stock fell by as much as 34 per cent from HK$4.67 in December 2013 with 10 million shares bought from March 19 to 25 at an average of HK$3.12 each. The purchases were also made after the company announced on March 12 a 24.2 per cent gain in year-end profit to 8.51 billion yuan (HK$10.7 billion). The buyers were executive director Zhu Rongbin, vice-chairman Yang Hui-yan, vice-president Liang Guokun and president Mo Bin.