Buying stays strong as directors' sales continue to fall

Buy value pushed up by purchases made by chairmen of ASM Pacific and Xinyi Glass

PUBLISHED : Monday, 12 May, 2014, 2:58am
UPDATED : Monday, 12 May, 2014, 2:58am

The buying remained high while the selling among directors fell for the second consecutive week based on filings on the Exchange from May 5 to 9. A total of 32 companies recorded 150 purchases worth HK$1.03 billion versus seven firms with 18 disposals worth HK$102 million.

The number of companies and trades on the buying side were not far off the previous week's four-day totals of 32 firms and 156 acquisitions. The buy value, however, was sharply up from the previous week's purchases worth HK$663 million. On the selling side, the number of companies and trades were sharply down from the previous week's 15 companies and 27 disposals. The sell value, however, was slightly down from the previous week's sales worth HK$103 million.

The huge buy value was due to purchases by the chairmen of ASM Pacific Technology and Xinyi Glass Holdings worth a combined HK$622 million. Meanwhile, directors of Techtronic Industries led all sellers last week with sales worth HK$36 million.

Chairman Arthur Hendrik Del Prado recorded his first trades in machine designer and manufacturer ASM Pacific Technology based on filings on the Exchange since 1993 with an initial 6.55 million shares purchased from May 5 to 8 at an average of HK$90.79 each. The trades, which were worth nearly HK$595 million, represented 1.63 per cent of the issued capital. The acquisitions were made on the back of the 40 per cent rebound in the share price since March from HK$64.65. The purchases were also made after the company announced on April 24 a 1,870 per cent gain in first quarter profit to HK$156.69 million.

Investors should note that Aberdeen Asset Management unloaded 4.5 million ASM shares from April 18 to 29 at HK$83.00 to HK$82.76 each, which reduced its holdings by 9 per cent to 43.53 million shares or 10.86 per cent. The group previously reported a disposal-related filing on February 12 of 219,000 shares at HK$68.35 each. Overall, Aberdeen's stake is down by 16 per cent since February. Prior to those sales, the fund manager acquired a net 36.8 million shares from December 2005 to March 2013 at HK$27.23 to HK$96.83 each. The stock closed at HK$89.00 on Friday.

Chairman Lee Yin Yee recorded his first trade in car and construction glass manufacturer Xinyi Glass since June 2012 with 5.2 million shares purchased on May 8 at HK$5.24 each. The trade increased his holdings to 763.33 million shares or 19.46 per cent.

The acquisition was made on the back of the 31 per cent drop in the share price since November 2013 from HK$7.54. Despite the fall in the share price, the counter is still up since September 2012 from HK$2.90. He previously acquired 9.43 million shares from May to June 2012 at an average of HK$4.47 each and 42.5 million shares from August to October 2011 at HK$6.54 to HK$2.86 each or an average of HK$5.35 each. The stock closed at HK$5.36 on Friday.

Executive director Stephan Horst Pudwill and non-executive director Christopher Patrick Langley recorded their first trades in rechargeable tools manufacturer Techtronic Industries since April 2013 with a combined 1.65 million shares sold from April 22 to May 7 at an average of HK$25.05 each. The disposals were made on the back of the 34 per cent rise in the share price since February from HK$18.74.

Pudwill unloaded 1.3 million shares from May 5 to 7 at an average of HK$25.08 each, which lowered his stake to 42.56 million shares or 2.33 per cent. He previously sold 750,000 shares in November 2012 via options-related sale at HK$15.39 each.

Langley sold 350,000 shares from April 22 to May 5 at an average of HK$24.91 each, which reduced his holdings by 16 per cent to 1.05 million shares or 0.06 per cent. He previously sold 200,000 shares in April 2013 at HK$18.30 each and 300,000 shares in September 2012 at HK$13.76 each. The stock closed at HK$24.30 on Friday.

Robert Halili is managing director of Asia Insider