Opinion | Signs of caution as directors sell options-related shares
China Overseas Land, China Overseas Grand Oceans and TC Orient had largest sales by value
Directors remained cautious following the steep fall in the market with their buying contracting for the third straight week and the selling rising sharply last week, based on filings to the stock exchange from November 5 to 9.
Fourteen companies recorded 75 disposals worth HK$103.5 million, against 18 firms with 65 purchases worth HK$69 million. The sales were up from the previous week's 11 companies, 58 disposals and HK$42.3 million.
On the buying side, the number of trades and value were down from the previous week's 73 deals worth HK$156.7 million.
Another sign of caution by directors is the high number of options-related sales. Options-related sales are semi-bearish signals as directors who are inclined to take quick profits would hold on to at least a portion of those shares if they expect their companies' share prices to rise further.
Four stocks in which directors sold all of the shares that they acquired through options were Sino-Ocean Land, New World China Land, mobile communications radio components manufacturer Mobi Development and MTR Corp. The deals were worth HK$21 million.