Buying by directors rose for a second week, based on filings on the exchange in the first week of December, with 27 companies that recorded 129 purchases worth HK$319.3 million. The figures were up from the previous week's 22 companies, 122 purchases and HK$87 million.
The huge buy value was due to purchases by managing director Thomas Lau Luen-hung in department store operator Lifestyle International worth HK$259 million. Lau has been buying heavily since the last week of November with 18.18 million shares purchased worth HK$301 million at an average of HK$16.57 each. The acquisitions have paid off as the stock closed higher from his purchase price at HK$18.72 on Friday.
Selling also surged, with 26 companies that recorded 111 disposals worth HK$119.3 million. The figures were sharply higher from the previous week's 13 firms, 90 disposals and HK$56.2 million.
The top sellers in terms of value were directors of television set manufacturer Skyworth Digital Holdings worth HK$17.87 million. The disposals were made from December 3 to 4 at an average of HK$4.11 each. The sales were made on the back of the 41 per cent rebound in the share price since July from HK$2.91. The stock closed at HK$4.17 on Friday.
Aside from the purchases in Lifestyle, there were significant acquisitions in property plays Cheuk Nang and Heritage International and textiles maker Texwinca last week.
Chairman Cecil Chao Sze-tsung resumed buying shares of property developer Cheuk Nang at higher than his acquisition prices from November 2011 to June this year, with 58,000 shares purchased from November 29 to December 3 at HK$4.15 each. The trades raised his stake to 70.57 per cent. The deals were made on the back of the 42 per cent rise in the stock since July from HK$2.93. The counter closed at HK$4.53 on Friday.
Executive director Wu Jian recorded his first on-market trades in property investor and money-lending services provider Heritage since his appointment on September 5 with an initial 25 million shares purchased from November 30 to December 4 at an average of 48.1 HK cents each. The shares bought represented 1.33 per cent of the issued capital.
The acquisitions were made on the back of the 72 per cent rebound in the share price since August from 28 HK cents. Despite the rebound in the share price, the counter is still down since March from HK$1.27. The company announced on November 29 a first-half loss of HK$90.3 million, sharply less than the loss of HK$267.6 million last year.
The counter closed at 48 HK cents on Friday.
Chairman and managing director Poon Bun-chak recorded his first on-market trades in Texwinca since April 2008 with 1.06 million shares purchased from November 28 to December 3 at an average of HK$6.41 each. The trades raised his holdings to 48.35 per cent.
The acquisitions were made on the back of the 30 per cent rebound in the share price since September from HK$4.94. Despite the rebound in the share price, the counter is still down since August 2011 from HK$11.
Also positive this quarter are FMR and Aberdeen Asset Management. FMR acquired a net 250,000 shares from November 19 to 21 at HK$6.63 to HK$6.46 each, which boosted its stake to 6.01 per cent. Aberdeen Asset Management, on the other hand, purchased 586,000 shares at HK$6.20 each on October 19, which increased its holdings to 10.04 per cent.
The stock closed at HK$6.55 on Friday.
Robert Halili is managing director of Asia Insider