Opinion | Huishan Dairy and MIE show support after shares decline

Buying fell while selling among directors rose for a second week, based on filings on the exchange from October 13 to 17. A total of 45 companies recorded 204 purchases worth HK$1.13 billion, compared with 13 firms with 54 disposals worth HK$139 million.

The buy figures were down from 48 companies, 275 purchases and HK$1.4 billion. On the selling side, the number of companies and trades were consistent with the previous week's 14 firms and 50 disposals. The value, however, was sharply up from HK$34 million.

Buy-back activity fell last week, with 16 companies that posted 73 repurchases worth HK$164 million. The figures were down from the previous week's 18 firms, 87 repurchases and HK$201 million.

Despite the decline in buying, the bulk of the significant trades last week were purchases with initial buy-backs in MIE Holdings Corp and China Huishan Dairy Holdings, as well as insider acquisitions in Tianhe Chemicals Group and Tech Pro Technology Development.

The fall in crude prices hammered energy stocks this year. That may have prompted oil and petroleum producer MIE to buy back for the first time since listing in December 2010, with 16.8 million shares purchased from October 7 to 17 at an average of HK$1 each. The trades were made after the stock fell 43 per cent from November 2013.

MIE's buy-back price was lower than the initial public offering price of HK$1.70. The stock closed at HK$1 on Friday.

Dairy product producer Huishan Dairy bought back for the first time since listing in September 2013, with 15.4 million shares purchased from October 15 to 17 at an average of HK$1.75 each. The trades were made on the back of the 12 per cent drop in the share price since May.