The Insider | Hong Kong company earnings results spur buying of own company shares by directors
More companies also bought back their own shares in the latest period
Buying of shares in their own companies by Hong Kong directors rebounded sharply in the March 19 to March 23 week, according to filings to the stock exchange, while selling rose for a third straight week.
A total of 26 companies recorded 114 purchases by directors worth HK$125 million (US$15.9 million) versus 12 firms with 41 disposals worth HK$69 million. The buy figures were sharply up from the previous week’s 13 companies, 56 purchases and HK$39 million while sales were slightly up from the previous week’s nine firms, 34 disposals and HK$60 million.
More companies bought back their own shares in the March 16 to March 22 period, with 10 companies posting 22 repurchases worth HK$217 million, up from the previous five days’ seven companies buying back HK$152 million. The number of trades, however, was down from the previous period’s 26 repurchases.
The bulk of the director and buy-back transactions last week were made following announcements of companies’ earnings results. There were also several rare transactions last week, with a buy-back in real estate trust Link Reit and buybacks and a purchase by the CEO of electronics maker Techtronic Industries. On the selling side, two non-executive directors of conglomerate NWS Holdings recorded rare disposals following a sharp gain in the company’s share price.
Retail and car park operator Link Reit bought back 1.55 million units on March 21 at HK$68.30 each, its first buy-back since December 2016. It previously acquired an initial 2.09 million units from November 30 to December 1, 2016 at an average of HK$52.84 each.
