Fall in the number of firms and purchases, but buy value sharply up at HK$83.5 million
China Baoli Technologies chairman Zhang Yi buys 24.2m shares in the company, his first on-market trade since being appointed this month
Buying fell for the second straight week while selling among directors rebounded sharply based on filings on the Hong Kong Stock Exchange from September 19 to 23.
A total of 22 companies recorded 109 purchases worth HK$83.5 million versus 20 firms with 69 disposals worth HK$87.8 million. The number of companies on the buying side was down from the previous week’s 4-day total of 26 firms while the number of purchases was slightly up from the previous week’s 102 acquisitions.
Despite the fall in the number of firms and purchases last week, the buy value was sharply up from the previous week’s acquisitions worth HK$38 million. The sales, on the other hand, were sharply up from the previous week’s 12 companies, 29 disposals and HK$43.4 million.
The insider trades last week pushed the trade totals this month to 47 companies, 313 purchases, 50 directors and HK$180 million on the buying side and 31 firms, 171 disposals 38 directors and HK$207 million on the selling side.
The buy figures so far this month are far below from the whopping 115 companies, 1,177 trades, 126 directors and HK$2.12 billion in September last year. Based on the past ten years’ activity, insider purchases so far this month are also far below the averages in the month of September from 2007 to 2015 of 114 firms, 1,007 trades, 128 directors and HK$1.67 billion.
On the negative side, the number of companies, trades and directors are not far off the 38 firms, 219 disposals and 47 directors in September last year. The sell value, however, is sharply down from the HK$3.7 billion worth of sales in September 2015.
Based on the past ten years’ activity, the number of companies, trades and directors are slightly down from the averages of 41 firms, 234 disposals and 52 directors in the month of September from 2007 to 2015. The sell value, on the other hand, is far below the average in September from 2007 to 2015 of HK$780 million.
Aside from directors, buyback activity fell last week with 15 companies posting 97 repurchases worth HK$934 million. The figures were down from the previous week’s 4-day totals of 20 firms, 108 trades and HK$1.368 billion. The trades last week pushed the buyback totals this month to 30 companies, 345 trades and HK$4.196 billion. The number of firms and trades are far below the 64 companies and 345 transactions in September last year.
The value, however, is sharply up from the HK$2.153 billion worth of repurchases in September 2015, thanks in part to buybacks by HSBC Holdings worth HK$3.448 billion.
Based on the past ten years’ activity, the number of firms and trades are far below the average in the month of September from 2007 to 2015 of 43 companies and 458 transactions. The value, however, is sharply up from the average turnover of HK$1.174 billion in September from 2007 to 2015.
The most bullish stock of the week is tire cords manufacturer Xingda International as there were buybacks and purchases by an executive director. Even more bullish, the company and director resumed buying this month at higher prices.
Other companies where directors bought shares following an increase in share prices are AIA Group and China Baoli Technologies.
On the negative side, there were first-time sales by the chairmen of Bank of Communications and Guru Online Holdings.
Lastly, the top seller last week in terms of value was the chairman of Alltronics Holdings as he unloaded heavily at sharply higher than his acquisition prices from 2006 to 2008.
There were buybacks and purchases by executive director Tao Jin Xiang in mainland radial tire cords manufacturer Xingda International with a combined 1.42 million shares purchased from September 7 to 13 at an average of HK$2.73 each.
The company resumed buying back at higher than its acquisition prices earlier this year with 1.2 million shares purchased from September 12 to 13 at an average of HK$2.74 each.
The trades were made after the stock rose by 43 per cent from HK$1.92 on August 23. The group previously acquired 6.9 million shares from June 13 to July 22 at HK$1.62 to HK$2.12 each or an average of HK$1.91 each.
Prior to the repurchases this year, the company acquired 37.3 million shares from October 2014 to October 2015 at an average of HK$2.10 each and 21.3 million shares from September to October 2007 at an average of HK$2.55 each. Executive director Tao Jin Xiang, on the other hand, purchased 224,000 shares from September 7 to 12 at an average of HK$2.68 each, which increased his holdings to 593.252 million shares or 40.07 per cent of the issued capital. He previously acquired 90,000 shares from August 29 to 31 at HK$2.32 to HK$2.50 each or an average of HK$2.43 each. The purchases by Tao since August are his first on-market trades since the stock was listed in December 2006. He was appointed to the Board in 1998. The stock closed at HK$3.01 on Friday.
CEO Mark Tucker resumed buying shares of insurance and financial services provider AIA Group at higher than his acquisition prices earlier this year with 200 shares purchased on September 15 at HK$50.63 each.
The trade increased his holdings to 25.512 million shares or 0.21 per cent of the issued capital. He previously acquired 900 shares from May 16 to August 15 at HK$43.38 to HK$49.65 each or an average of HK$47.33 each and 900 shares from January 15 to April 15 at HK$38.00 to HK$45.94 each or an average of HK$43.33 each. Prior to his trades this year, the CEO acquired 2,500 shares from January to December 2015 at HK$53.68 to HK$43.15 each or an average of HK$48.60 each and 464,000 shares from October 2010 to December 2014 at HK$22.36 to HK$45.44 each or an average of HK$23.28 each.
Tucker joined the company in July 2010. Although the CEO’s acquisitions tend to be small with an average of only 2,000 shares purchased per day since 2011, the stock tends to rise following his purchases. Shares in AIA rose by an average of 7 per cent six months after he bought shares based on 60 purchases since 2010. The stock recorded a price gain six months after on 79 per cent of those acquisitions. The stock closed at HK$51.80 on Friday.
Chairman Zhang Yi recorded his first on-market trade in consolidated enterprises firm China Baoli Technologies Holdings since his appointment on September 5 with 24.2 million shares purchased on September 15 at HK$0.29 each.
The trade increased his holdings to 2.086 billion shares or 6.41 per cent of the issued capital. The acquisition was made on the back of the 81 per cent rebound in the share price since August from HK$0.16. Despite the rebound in the share price, the counter is still down since May from HK$0.36.
Also positive this quarter is former chairman Anthony Yeung Chun Wai with 80.5 million shares purchased from July 29 to August 17 at an average of HK$0.165 each, which boosted his stake to 2.652 billion shares or 8.15 per cent. He previously acquired 59 million shares from July 15 to 20 at an average of HK$0.245 each and 70.4 million shares from February 1 to March 3 at an average of HK$0.22 each. Prior to his purchases this year, the chairman sold 91.3 million shares in September 2015 at HK$0.28 each. Yeung was appointed to the board in July 2015. China Baoli changed its name from REX Global Entertainment Holdings Limited in June. The counter closed at HK$0.275 on Friday.
Chairman Niu Xi Ming recorded his first on-market trade in commercial banking services provider Bank of Communications since his appointment in May 2013 with 130,000 shares sold on September 22 at HK$6.30 each. The trade reduced his holdings by 42 per cent to 180,000 shares. The sale was made on the back of the 58 per cent rebound in the share price since February from HK$4.00. He previously acquired 150,000 shares in December 2015 at HK$5.37 each and an initial 160,000 shares in July 2015 at an average of HK$7.03 each. The stock closed at HK$6.25 on Friday.
Chairman & CEO Yip Shek Lun recorded the first on-market trade by a director in digital marketing service provider Guru Online (Holdings) since the stock was listed in May 2015 with 16.3 million shares sold on September 19 at HK$0.20 each. The trade reduced his holdings to 640.750 million shares or 38.43 per cent of the issued capital. The sale was made on the back of the 23 per cent drop in the share price since February from HK$0.26. The counter is also down since June 2015 from HK$1.01. The chairman’s sale price was lower than the IPO prices of HK$0.21 to HK$0.25 each. The counter closed at HK$0.16 on Friday.
Chairman & CEO Lam Yin Kee recorded sales in electronic products manufacturer Alltronics Holdings at higher than his acquisition price in October 2008 with 9.8 million shares sold from September 9 to 20 at an average of HK$2.94 each.
The trades, which accounted for 41 per cent of the stock’s trading volume, reduced his holdings to 252.708 million shares or 56.2 per cent of the issued capital. The disposals were made on the back of the 54 per cent rise in the share price since May from HK$1.91. The counter is also up since August 2012 from HK$0.75. He previously acquired 105,000 shares in October 2008 at HK$0.25 each and a net 1.5 million shares from November 2006 to August 2007 at an average of HK$1.88 each. The stock closed at HK$2.89 on Friday.
Robert Halili is managing director of Asia Insider