The InsiderFive Hong Kong companies that warrant being on an investor’s watch list

The buying rebounded while the selling among directors was high for the first time in the past five weeks based on filings on the Hong Kong Stock Exchange from October 31 to November 4.

A total of 28 companies recorded 104 purchases worth HK$160 million versus 16 firms with 58 disposals worth HK$186 million. The number of purchases was unchanged but the number of companies and buy value were sharply up from the previous week’s 22 firms and HK$103 million. On the selling side, the number of disposals was down from the previous week’s 68 trades but the number of companies and value were up from the previous week’s 13 firms and HK$124 million.

Meanwhile, the buyback activity rose for the second straight week with 23 companies that posted 146 transactions worth HK$1.533 billion. The number of firms and trades were up from the previous week’s 20 companies and 116 transactions. The value, however, was down from the previous week’s turnover of HK$1.679 billion.

There were some bullish trades last week as several companies and directors resumed buying at higher prices. Cogobuy Group recorded its highest purchase price since it started its buyback programme in December 2014. On the directors’ side, the heads of BYD Electronic, Oi Wah Pawnshop, Yestar International and Zhongyu Gas resumed buying last week at higher prices, an indication that these stocks are still undervalued despite the run-up in their share prices.

E-commerce platform services provider Cogobuy Group bought 5.7 million shares from October 28 to November 3 at HK$12.04 to HK$12.30 each, or an average HK$12.16. The trades accounted for 33 per cent of the share’s trading volume.