The Insider | Buyback of stocks jumps again in Hong Kong

Insider activity surged based on filings on the Hong Kong stock exchange from March 28 to April 1 with 21 companies that recorded 113 purchases worth HK$238 million versus 11 firms with 47 disposals worth HK$247 million. The figures were sharply up from the previous week’s four-day totals of 14 companies, 58 purchases and HK$27 million on the buying side and four firms, nine disposals and HK$20 million on the selling side.

Meanwhile, the buyback activity rose for the second straight week with 20 companies that posted 79 repurchases worth HK$202 million. The number of firms and trades were up from the previous week’s 15 companies and 63 repurchases. The value, however, was sharply down from the previous week’s turnover of HK$368 million.

The bulk of the significant trades last week were purchases with buybacks in SEA Holdings and insider buys in Henderson Land, Brightoil Petroleum and China Health Group.

Property management firm SEA Holdings recorded its highest acquisition prices since it started its buyback programme in November 1999 with 150,000 shares purchased from March 29 to April 1 at HK$20.05 to HK$21.50 each, or an average of HK$20.73 each. The trades were made on the back of the 39 per cent rise in the share price since the last week of January from HK$14.90.

The acquisitions were also made after the company announced on March 24 a 109.79 per cent gain in year-end profit to HK$1.435 billion. The group previously acquired 2.48 million shares from January 11 to 22 at HK$13.08 to HK$15.60 each, or an average of HK$14.55 each. Prior to the repurchases this quarter, the company acquired 30.8 million shares from July 2014 to December 2015 at HK$4.63 to HK$12.80 each, or an average of HK$7.61 each, 31 million shares from January 2009 to July 2011 at HK$2.26 to HK$5.55 each, or an average of HK$3.24 each and 44.5 million shares in November 1999 at HK$2 each. The stock closed at HK$21.60 on Friday.

Chairman Lee Shau Kee resumed buying shares of blue chip property developer Henderson Land Development after the stock rebounded by 23 per cent from HK$37.70 on January 21 with 3.634 million shares purchased from March 22 to 24 at HK$46.36 each. The trades, which accounted for 11 per cent of the stock’s trading volume, increased his holdings to 2.393 billion shares, or 72.39 per cent, of the issued capital. The purchases were also made after the company announced on March 21 a 29 per cent gain in year-end profit to HK$21.874 billion.