Selling picks up pace amid drop in director deals

Chairmen of Regal Hotels and Termbray Petro-king among active players in market

PUBLISHED : Monday, 26 May, 2014, 5:06am
UPDATED : Monday, 26 May, 2014, 5:06am

Buying among directors dived while selling rose for the second consecutive week, based on filings to the stock exchange last week.

There were 28 companies with 208 purchases worth HK$191 million, against 12 firms with 47 disposals worth HK$38 million.

In the previous week, 46 companies saw 295 purchases worth HK$648 million, while eight firms recorded 27 disposals totalling HK$59 million.

Insider buying has been heavy this quarter: 714 purchases worth HK$1.69 billion last month and 593 deals worth HK$1.77 billion so far this month.

Among the most active buyers were the chairmen of Regal Hotels International Holdings and Termbray Petro-king Oilfield Services.

Heavy trading was also seen in Matrix Holdings, with two directors buying and three selling.

Lo Yuk-sui, the head of Regal Hotels, bought nearly 13 million shares from April 1 to May 19 in 60 transactions at HK$4.01 to HK$4.61 per share. The trades accounted for 49 per cent of the stock's trading volume.

Lo last bought 236,000 shares on May 19 at HK$4.59 each, which increased his holdings to 570.28 million shares or 61.1 per cent of the company. He began his buying spree after the stock fell by as much as 18 per cent from HK$4.89 in January.

Lo previously acquired 62.2 million shares from July to November last year at average of HK$4.03 per share.

Investors should note that the company bought back 10.7 million shares from January 2 to 21 at an average of HK$4.81 each and 20 million shares in December last year at HK$4.70 each.

The stock closed at HK$4.65 on Friday.

Wang Jinlong, the chairman of Termbray, has been buying shares of the oil and gas field services provider at progressively higher prices this month, picking up 4.32 million shares from May 5 to 21 at HK$2.34 to HK$3 each. The trades accounted for 17 per cent of the stock's trading volume.

Wang now owns 333.89 million shares or 30.9 per cent of the company.

He previously bought 2.06 million shares from April 17 to 23 at an average HK$2.62 each. The acquisitions since last month were made on the back of a drop in the share price from January's HK$4.94.

The stock last traded at HK$2.95.

There were conflicting insider trades in novelty products manufacturer Matrix, with buying by chairman Cheng Yung-pun and executive director Cheng King-cheung and selling by executive directors Leung Hong-tai and Yu Sui-chuen and vice-chairman Arnold Rubin.

The transactions, however, amounted to a net purchase of 2.65 million shares at an average of HK$2.15 each. The trades were made after the stock rebounded from HK$1.44 in March.

It was the first trades for Cheng Yung-pun since April 2011. He bought 3.3 million shares from May 19 to 21 at an average of HK$2.15 each, which increased his holdings to 530.31 million shares or 70.16 per cent.

Cheng King-cheung bought 26,000 shares on May 19 at HK$1.68 each, which boosted his stake to 1.69 million shares or 0.22 per cent of the company.

On the selling side, Leung sold 200,000 shares from May 19 to 21 at an average of HK$2.08 each, which reduced his stake to 6.74 million shares or 0.9 per cent of the company.

Yu sold 400,000 shares on May 20 and 21 at an average of HK$2.23 each, which lowered his stake to 440,000 shares or 0.06 per cent.

Rubin sold 90,000 shares on May 21 at HK$2.20 each. This left him with 6.3 million shares or 0.83 per cent of the company.

The stock closed at HK$2.08 on Friday.

Robert Hailili is the managing director of Asia Insider