Buying rises for second week while selling among directors surges

Companies made 108 purchases worth HK$171m while 71 disposals reached a value of HK$445m

PUBLISHED : Monday, 23 June, 2014, 3:08am
UPDATED : Monday, 23 June, 2014, 3:08am

The buying rose for the second consecutive week while the selling among directors surged based on filings on the exchange in the third week of June. A total of 21 companies recorded 108 purchases worth HK$171 million versus 19 firms with 71 disposals worth HK$445 million.

The number of companies and value on the buying side were sharply up from the previous week's 16 firms and HK$109 million while the number of trades was not far off from the previous week's 114 acquisitions. The sales, on the other hand, were sharply up from the previous week's nine companies, 28 disposals, and HK$17 million.

Aside from directors, the buyback activity rose last week with 11 companies that posted 62 repurchases worth HK$309 million. The figures were sharply up from the previous week's eight firms, 43 trades, and HK$83 million.

Chairman Zhang Tianren and vice-president Chen Minru recorded their first trades in battery manufacturer Tianneng Power International since July 2013 with a combined 600,000 shares purchased from June 17 to 18 at HK$2.90 each. The trades were made on the back of the 18 per cent drop in the share price since February from HK$3.53.

Zhang bought 500,000 shares on June 18 at HK$2.90 each, which increased his holdings to 408.556 million shares or 36.74 per cent of the issued capital. He previously acquired 262,000 shares in July 2013 at HK$3.19 each and 8.8 million shares from May to December 2012 at an average of HK$3.94 each.

Chen, on the other hand, recorded his first acquisition since the stock was listed in June 2007 with 100,000 shares purchased on June 17 at HK$2.90 each. He previously sold 1.8 million shares in December 2012 at HK$4.55 each. The stock closed at HK$2.88 on Friday.

There were heavy options-related sales in property developer Evergrande Real Estate Group this month with chief executive Xia Haijun unloading 41.8 million shares from June 5 to 13 at an average of HK$3.69 each. The trades reduced his holdings to 32 million shares or 0.22 per cent. He acquired those shares via options in the same period at HK$2.40 each. The disposals were made on the back of the 16 per cent rebound in the share price since May from HK$3.17. Although the disposals in the past three months were options-related, these sales are semi-bearish signals as directors have opted to take quick profits instead of holding those shares for the long-term. The stock closed sharply below his sale prices to HK$2.94 on Friday.

The sentiment is high in Regal Hotels this month with buybacks and purchases by chairman Lo Yuk-sui with 4.4 million shares purchased from June 3 to 19 at an average of HK$4.68 each. The trades accounted for 61 per cent of the stock's trading volume.

Regal Hotels bought back 1.47 million shares from June 16 to 19 at an average of HK$4.70 each. The group previously acquired 10.7 million shares from January 2 to 21 at an average of HK$4.81 each and 20 million shares in December 2013 at an average of HK$4.70 each.

Lo bought 2.93 million shares from June 3 to 13 at an average of HK$4.66 each, which increased his holdings to 575.734 million shares or 61.69 per cent. He also acquired 15.6 million shares from April 1 to May 30 at an average of HK$4.48 each.

Lo has purchased 18.5 million shares worth HK$83.6 million since April at an average of HK$4.51 each.

The stock closed at HK$4.74 on Friday.