Opinion | Plunge in share prices prompts directors to buy

Buying rebounded while selling among directors last week rose for the second consecutive week, exchange filings showed. Buyers outweighed sellers, with 43 companies recording 192 purchases worth HK$341 million, against 20 firms with 61 disposals worth HK$32 million.

In the previous week, there were 33 companies, 116 purchases and HK$260 million on the buying side, compared with 16 firms, 50 disposals and HK$24 million on the selling side.

Buy-back activity also rose, with 21 companies in 116 deals worth HK$211 million, compared with 17 firms in 77 trades amounting to HK$193 million previously.

Significant trades were seen in recently listed Ernest Borel Holdings and WH Group and rare purchases in Carrianna Group Holdings and China Yongda Automobiles Services Holdings. The acquisitions were made following steep falls in the companies' share prices.

Su Da was the first director to buy shares in watch manufacturer and distributor Ernest Borel since the stock was listed in July. The chairman bought 100,000 shares at HK$2.70 each on Monday, raising his holdings to 89.716 million shares or 25.82 per cent of the issued capital.

The trade followed a 55 per cent plunge in the share price since August from HK$5.99.