TELEVISION Broadcasts (TVB) stocks climbed 13 per cent on the week, finishing at $29.15 yesterday, with analysts attributing the increase in share price to a market correction.
'It's a purely technical thing,' said one analyst who said that TVB stock had been oversold at $25 and was due for an upswing in price.
Alfred Ng, TVB's company secretary, agreed.
'We haven't reached any agreement with anybody,' he said. 'There is nothing to explain it.' At one point last year, TVB shares were selling for $35 but fell to a low of about $25 by the beginning of the year when the Hang Seng Index came under strong selling pressure as fund managers and investors off-loaded their Hong Kong stocks, including TVB. One analyst said: 'In the beginning of December, the stock was trading at over $30 but was pushed down by a couple of investors.
'But by the end of last week or early this week, it had bottomed out. This is more of a technical rebound.' Mr Ng said: 'People are returning to the market. The stocks are cheap. I can't give any other explanation than that.' TVB share prices got a boost on Friday, closing at $25.60 with analysts reporting that some of that buying activity was generated by part owners Robert Kwok and Sir Run Run Shaw.
Collectively, they own more than 50 per cent of TVB.
