Bank of East Asia’s deputy CEO pares stake while Kingmaker’s executives amass shares

PUBLISHED : Sunday, 04 March, 2018, 2:41pm
UPDATED : Wednesday, 07 March, 2018, 12:51pm

A 29 per cent increase in the share price of Bank of East Asia in the past two years prompted the lender’s deputy chief executive to sell some of his stock, his first on-market disposal since his August 2014 appointment as director.

Deputy CEO Adrian David Li Man Kiu sold 216,000 Bank of East Asia shares on February 27 at HK$34.05 each, paring his holdings to 7.003 million shares, or 0.25 of the issued capital. The stock dipped 1.7 per cent to HK$34.35 on Friday.

Li’s transaction was among the 15 disposals valued at HK$28 million disclosed last week by Hong Kong’s corporate insiders in five companies, a sharp increase from the HK$7 million reported a week earlier.

On the buying side, directors’ purchases fell for the second week, with 12 companies reporting 49 deals worth HK$122 million, based on filings to the stock exchange from February 28 to March 2.

Aside from directors, the buy-back activity fell for the second week with eight companies that posted 24 trades worth HK$65 million. The figures were not far off from the previous 3-day totals of 8 firms, 25 trades and HK$61 million.

Investors should watch out for Kingmaker Footwear Holdings, as the footwear manufacturer has been quietly buying back at progressively higher prices in the past five weeks. Kingmaker repurchased 4.32 million shares from January 25 to February 28 at an average of HK$2.15 each.

The group previously acquired 2.8 million shares from July to September 2017 at an average price of HK$2.39 each, 3.85 million shares from March to October 2016 at HK$1.85 each on average and 2.87 million shares from March to December 2015 at an average of HK$1.49 each. Kingmaker shares fell 0.9 per cent to HK$2.20 on Friday.

Significant Points

  • The Group recorded buys on 17 out of the 23 trading days from January 25 to February 28
  • The recent buy-backs accounted for 36 per cent of the stock’s trading volume
  • The recent buy-backs were made after the stock fell by as much as 20 per cent in October 2017

At Computime Group, non-executive director Dennis Au Hing Lun sold 1.5 million shares from March 1 to 2 at an average price of HK$1.33 each. The trades reduced his holdings to 7.320 million shares, or 0.87 per cent of the issued capital.

Chairman Auyang Ho sold 5 million shares from January 15 to 24 at HK$1.35 each, paring his holdings to 358.216 million shares, or 42.66 per cent. Computime shares dipped 0.7 per cent to HK$1.34 on Friday.

Significant Points

  • Non-executive director Au recorded his first disposals since his appointment in May 2014
  • The sales accounted for 84 per cent of the stock’s trading volume
  • The sales reduced his holdings by 17 per cent
  • Despite the fall in the share price, a portion of the director’s sales were made at a profit based on the 200,000 shares that he acquired in January 2016 at HK$1.08 each