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Insider buying down sharply as disposals more than double

West China Cement and Gome Electrical Appliances make rare shows on buyback side

PUBLISHED : Monday, 14 April, 2014, 5:07am
UPDATED : Monday, 14 April, 2014, 5:07am

Buying activity slowed after surging for three consecutive weeks while selling among directors rebounded sharply based on filings to the exchange from April 7 to 11.

A total of 32 companies recorded 140 purchases worth HK$225 million against 16 firms with 60 disposals worth HK$249 million.

The buy figures were sharply down from the previous week's 57 companies, 273 purchases, and HK$608 million.

Sales, on the other hand, were sharply up from the previous week's nine firms, 40 disposals, and HK$113 million.

While buying by directors plunged last week, buyback activity rose with 16 companies that posted 74 repurchases worth HK$257 million. The figures were up from the previous week's 14 firms, 69 trades, and HK$117 million.

The bulk of the significant insider trades last week were purchases in Wisdom Holdings, China Fiber Optic Network System, and Peak Sport Products. On the buyback side, there were rare repurchases in West China Cement and Gome Electrical Appliances.

Chairman Ren Guozun recorded her first on-market trades in media investment management services provider Wisdom since the stock was listed in July last year with 2.475 million shares purchased from March 31 to April 8 at HK$5.48 to HK$4.86 each or an average of HK$5.07 each.

The trades, which accounted for 8 per cent of the stock's trading volume, increased her holdings to 890.48 million shares or 55.34 per cent of the issued capital. The stock closed at HK$4.59 on Friday.

Chairman Zhao Bing resumed buying shares of fibre optic patch cords manufacturer China Fiber Optic at a sharply higher price with 500,000 shares bought on April 7 at HK$2.08 each. The trade increased his holdings to 528.06 million shares or 36.24 per cent. He previously acquired 17.2 million shares in December at an average of HK$1.45 each. The stock closed at HK$2.09 on Friday.

Chairman Xu Jingnan recorded his first on-market trade in sportswear products designer and manufacturer Peak Sport since October 2013 with one million shares purchased on April 4 at HK$2.12 each. The trade increased his holdings to 885.3 million shares or 42.2 per cent. The trade was made on the back of the 28 per cent rebound in the share price since November from HK$1.66. The stock closed at HK$2.15 on Friday.

Cement producer West China Cement bought back for the first time since listing in August 2010 with six million shares purchased from April 8 to 11 at an average of HK$1 each. The trades were made on the back of the 29 per cent rebound in the share price since March from 78 HK cents. The stock closed at HK$1.04 on Friday.

Consumer electronic products retailer Gome bought back for the first time since February 2008 with 45.78 million shares purchased from April 7 to 11 at an average of HK$1.38 each.

The acquisitions, which accounted for 6 per cent of the stock's trading volume, were made on the back of the 19 per cent rebound in the share price since March from HK$1.16. The stock closed at HK$1.45 on Friday.

Robert Halili is managing director of Asia Insider

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