The InsiderDirector purchases surge while buy-back activity takes a dive

Buying among directors surged while selling was high for a third week, based on filings to the Hong Kong exchange during the typhoon-shortened week of October 17 to 20. A total of 30 companies recorded 146 purchases worth HK$424 million, compared with 13 firms with 44 disposals worth HK$300 million.

The buy figures were sharply up from the previous week’s five-day totals of 23 companies, 101 purchases and HK$131 million. On the selling side, the number of firms was not far off from the previous week’s 16 companies while the sell value was sharply up from HK$123 million. The number of transactions, however, was down from 68 disposals.

Meanwhile, buy-back activity plunged, with 15 companies that posted 58 repurchases worth HK$979 million. The number of firms was consistent with the previous week’s 16 companies, but the number of trades and their value were sharply down from 93 transactions worth HK$1.86 billion.

There were several significant trades last week, with buy-backs in C.banner International Holdings and Sihuan Pharmaceutical Holdings Group, as well as insider purchases in Dawnrays Pharmaceutical Holdings and Honghua Group. On the negative side, investors should trade with caution in Huisheng International Holdings, Wuyi International Pharmaceutical and China Jicheng Holdings due to rare or first-time sales by their​chairmen.

Women’s footwear designer and manufacturer C.banner recorded its first buy-back since July last year with 2.16 million shares purchased on October 20 at HK$2.12 each. The trade was made on the back of the 38 per cent drop in the share price since April from HK$3.44. The counter is also down since January from HK$3.69. The group previously acquired 14.9 million shares in July last year at an average of HK$2.80 each. Investors should note that the stock rose 29 per cent following those buy-backs last year to HK$3.62 in January this year. The group’s latest buy-back prices were lower than the listing price of HK$3.24. The stock closed at HK$2.16 on Thursday.