THE INSIDER

MGM China and NetDragon lead way in buy-backs

Chairmen boost holdings in Oi Wah and Anton Oilfield Services while disposal volume shrinks

PUBLISHED : Monday, 16 June, 2014, 3:07am
UPDATED : Monday, 16 June, 2014, 3:07am

Directors were in a bullish mood last week, with purchases rising sharply from the previous week, according to filings to the stock exchange.

Sixteen companies recorded 114 purchases worth HK$109 million, against nine firms with 28 disposals at HK$17 million.

In the week before, purchases amounted to just HK$67 million from 94 trades, while sales totalled HK$132 million from 53 disposals.

Buy-back activity was busy, with eight companies posting 41 purchases worth HK$70 million.

The number of firms and trades was up from the previous week's six companies and 33 deals. But the value was slightly down from HK$76 million.

Among the significant purchases last week were buy-backs by MGM China Holdings and NetDragon Websoft and insider acquisitions in Oi Wah Pawnshop Credit and Anton Oilfield Services Group.

Gaming firm MGM China resumed buying back shares after the stock fell 20 per cent from its acquisition price in March, with 31,000 shares bought on Thursday at HK$24.95 each.

The group had acquired 228,000 shares on March 11 at HK$31.31 each.

The stock closed at HK$24.75 on Friday.

Online game developer NetDragon recorded its first buy-backs since September last year with 1.36 million shares acquired from Tuesday to Friday at an average of HK$14.48 each.

The trades, which accounted for 25 per cent of the stock's trading volume, followed a 23 per cent rebound in the share price since May from HK$11.76. The counter is still down from HK$29.45 in October last year.

The stock rose an average of 34 per cent six months after the group bought shares, based on 63 filings since 2008.

Also positive this quarter is chairman Liu Dejian with 5 million shares bought from April 22 to 25 at an average of HK$14.62 each, which increased his holdings to 49.92 per cent.

The stock ended at HK$14.64 on Friday.

Chairman Edward Chan picked up where he left off in the last week of last month with purchases in financial services provider Oi Wah.

Chan bought 2.55 million shares from Tuesday to Thursday at HK$1.42 each. The trades, which accounted for 71 per cent of the stock's trading volume, increased his holdings to 67.89 per cent. He previously acquired 2.96 million shares on May 26 at HK$1.47 each.

Chan's purchase prices were higher than the initial public offering price of 98 HK cents in March last year.

The stock ended at HK$1.49.

Chairman Luo Lin resumed buying in oilfield product and service provider Anton with 9.35 million shares picked up from June 4 to 10 at an average of HK$5.73 each.

The trades, which accounted for 27 per cent of the stock's trading volume, increased Luo's holdings to 30.82 per cent. He acquired 5.87 million shares from May 14 to 19 at an average of HK$5.42 each.

The shares closed at HK$5.38 on Friday.

Robert Halili is the managing director of Asia Insider

 

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