Opinion | Directors make rare buys as share purchases hit a high

Buying of their own company shares by directors was high for the first time in the past six weeks, with 22 companies reporting 122 purchases worth HK$87 million based on filings made to the stock exchange for the last week of November.

The figures were up from the previous week's 21 companies that reported 85 purchases worth HK$34.2 million.

Insider sales were high for the fourth straight week, with 13 companies reporting 90 disposals worth HK$56.2 million. The number of companies and trades were up from the previous week's 11 companies and 76 disposals, but the value was sharply down from the previous week's sales worth HK$99.5 million.

There were rare buys by directors of Arts Optical International, Lifestyle International, and High Fashion International following the fall in their share prices; but the chairman of Pearl River Tyre acquired more shares despite the sharp increase in the company's share price. The buys were made ahead of the companies' year-end results in the first quarter of 2013.

Executive director Ng Kim Ying recorded his first purchase in optical products manufacturer Arts Optical since 2008, with five million shares bought on November 22 at HK$2.14 each. The trade increased his holdings by 30 per cent to 21.65 million shares, or 5.64 per cent of the issued capital.

The acquisition was made after the stock fell by 14 per cent from HK$2.40 on October 11. The stock is also sharply down since his previous trade, the sale of three million shares in July 2010 at HK$3.91 each.