The Insider | Directors return to buying after lengthy absence as share prices rise

Insider activity rose last week, with 50 companies recording 234 purchases worth HK$163 million versus 18 firms with 77 disposals worth HK$125 million.

The number of companies and trades on the buying side were up from the previous week’s 47 firms and 206 purchases. The buy value, however, was down from the previous week’s acquisitions worth HK$217 million, while sales were up from the previous week’s 15 companies, 71 disposals and HK$107 million.

Meanwhile, buyback activity fell, with 25 companies that posted 154 repurchases worth HK$771 million based on filings from June 30 to July 6. The figures were down from the previous 5-day totals of 28 firms, 179 trades and HK$870 million.

There was a common trading theme last week as several directors bought shares following steep gains in their companies’ share prices. Even more significant, the purchases were made following a lengthy absence by directors. Among the stocks that recorded insider buys on strong share price gains are Hopefluent Group Holdings, Chinney Investments and Forgame Holdings.

The most significant director transactions last week were in real estate agency and estate management services provider Hopefluent Group Holdings with purchases by the two co-founders of the company. Chairman Fu Wai Chung and his spouse, executive director Ng Wan acquired 1.05 million shares from July 3 to 5 at HK$2.80 to HK$2.97 each, an average of HK$2.89 each. The stock closed higher than these two directors’ purchase prices at HK$3.02 on Friday.

There are six significant points on the Hopefluent trades: