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Buying by directors surges, selling resumes (Amendment)

Buyback activity falls with 17 companies posting 79 repurchases worth S$46.9m compared to 18 companies, 94 transactions and S$70.6m previously

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THE buying by directors rebounded sharply while sellers got back on track based on filings on the Singapore Exchange from June 13 to 17. A total of 20 companies recorded 37 purchases worth S$860,000 versus two firms with two disposals worth S$260,000.

The buy figures were sharply up from the previous week's 11 companies, 25 purchases and S$590,000. There were no sales by directors in the previous week.

 While the buying by directors surged last week, buyback activity fell with 17 companies posting 79 repurchases worth S$46.9 million. The number of firms was consistent with the previous week's 18 companies but the number of trades and value were down from the previous week's 94 transactions worth S$70.6 million.

 There were several significant corporate shareholder trades last week. Falcon Energy Group resumed buying back following the steep fall in its share price.

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On the directors' side, there were purchases in Megachem Limited, Pacific Radiance, ISR Capital Limited, San Teh Limited and Hafary Holdings and sales in Genting Singapore plc.

Lastly, major shareholder GKG Investment Holdings recorded its first buy in GK Goh Holdings since September last year following the rebound in the stock price.

Falcon Energy Group Ltd

Marine, oil and gas support service provider Falcon Energy Group resumed buying back after the stock fell by 69 per cent from its acquisition price in January 2015 with 384,000 shares purchased on June 17 at S$0.17 each. The group previously acquired 2.5 million shares in January 2015 at an average of S$0.28 each.

Prior to the buybacks since 2015, the company acquired 11.44 million shares from September 2013 to December 2014 at S$0.44 to S$0.27 each or an average of S$0.36 each. The stock's continued decline this year is surprising as the company announced in May a 132.3 per cent gain in profit to US$64.661 million.

The counter closed at S$0.169 on Friday. 

Megachem Ltd

Executive director Jeffrey Tan Bock Chia resumed buying shares of specialty chemical solutions provider Megachem at higher than his acquisition price in April with 59,000 shares purchased from May 9 to June 13 at S$0.35 to S$0.38 each or an average of S$0.369 each.

The trades, which accounted for 100 per cent of the stock's trading volume, increased his direct holdings to 24.751 million shares or 18.57 per cent of the issued capital.

He last bought 10,000 shares on June 13 at S$0.37 each. Aside from his purchases since May, Mr Tan acquired 52,000 shares from April 8 to 21 at an average of S$0.33 each. Prior to his purchases this quarter, the director acquired 1.53 million shares from January to December 2015 at an average of S$0.35 each and 1.59 million shares from November 2004 to December 2014 at S$0.15 to S$0.31 each or an average of S$0.24 each.

The counter closed at S$0.37 on Friday.

Pacific Radiance Ltd

Independent director Goh Chong Theng recorded an on-market trade in offshore vessels and support services provider Pacific Radiance with 30,000 shares purchased on June 10 at S$0.295 each. The trade increased his direct holdings by 19 per cent to 190,000 shares or 0.03 per cent of the issued capital. 

The purchase was made on the back of the 14 per cent drop in the share price since March from S$0.34.

Despite the fall in the share price, the counter is still up since February from S$0.276.

Investors should note that there were buybacks by the company earlier this year with 6.246 million shares purchased from Jan 6 to 22 at an average of S$0.295 each.

The group previously acquired 271,400 shares on Dec 14, 2015, at S$0.30 each.

Prior to the repurchases since December 2015, the company acquired 3.41 million shares from Aug 20 to Sept 8, 2015, at an average of S$0.303 each. The acquisitions since August 2015 are the company's first buybacks since listing in November 2013. The company's purchase prices were sharply lower than the IPO price of S$0.90.

The counter closed at S$0.28 on Friday.

ISR Capital Ltd 

Non-executive director David Francis Rigoll recorded his first on-market trade in capital market advisory services provider ISR Capital since his appointment on May 16 with 1.663 million shares purchased on June 13 at S$0.09 each.

The trade increased his direct holdings to 426.663 million shares or 28.56 per cent of the issued capital. The purchase was made on the back of the 23 per cent drop in the share price since May from S$0.117. Despite the fall in the share price, the counter is still up since February from S$0.003.

The counter closed at S$0.09 on Friday.

San Teh Ltd 

Finance director Kao Ching Fong Nee Pan picked up where she left off in building materials manufacturer and distributor, hotel operator and property developer San Teh in April with 115,000 shares purchased from June 10 to 13 at S$0.23 each.

The trades increased her deemed holdings to 84.177 million shares or 24.61 per cent of the issued capital. She also has direct interest of 32.422 million shares or 9.48 per cent. The purchases were made on the back of the 17 per cent drop in the share price since May from S$0.276.

She previously acquired 295,000 shares on April 7 and 300,000 shares on March 2 at an average of S$0.23 each.

Prior to her purchases this year, the director acquired one million shares from April to June 2015 at an average of S$0.29 each and 10.2 million shares from November 2010 to August 2012 at S$0.42 to S$0.29 each or an average of S$0.34 each.

The counter closed at S$0.22 on Friday. 

Hafary Holdings Ltd  

Chief executive officer Low Kok Ann resumed buying shares of building materials distributor and wholesaler Hafary Holdings at lower than his acquisition prices earlier this year with 54,000 shares purchased on June 16 at S$0.165 each. The trade increased his direct holdings to 35.459 million shares or 8.27 per cent of the issued capital.

He previously acquired 307,000 shares from Feb 24 to 29 at an average of S$0.197 each.

Prior to his trades this year, Mr Low acquired 291,000 shares in November 2015 at S$0.19 each and 888,000 shares in September 2015 at S$0.18 each.

The purchases by the CEO since September 2015 are his first on-market trades since the stock was listed in December 2009 on Catalist and in June 2013 on the SGX Mainboard.

The counter closed at $0.17 on Friday.

Genting Singapore plc

Independent director Koh Seow Chuan resumed selling shares of resort and casino operator Genting Singapore after the stock fell by 17 per cent from his sale price in April with the sale of his entire holdings of 200,000 shares (direct interest) on June 15 at S$0.725 each. He previously sold 221,000 shares on April 22 at S$0.88 each.

Prior to his trades this year, Mr Koh sold 239,000 shares in November 2015 at S$0.78 each and 631,000 shares from August 2010 to May 2013 at S$1.40 to S$2.07 each or an average of S$1.56 each.

Mr Koh was appointed to his post in May 2008.

Also negative this year is independent director Tjong Yik Min with the sale of his entire holdings of 100,000 shares (direct interest) on Feb 19 at S$0.715 each.

He previously sold his entire direct stake of 269,000 shares in October 2015 at S$0.845 each, his entire deemed holdings of 256,000 shares in August 2015 at S$0.76 each and 800,000 shares in June 2015 at S$0.91 each. Prior to his trades since 2015, Mr Tjong sold 250,000 shares in September 2010 at S$2.14 each and 300,000 shares in August 2010 at S$1.59 each.

Mr Tjong was appointed to the board in September 2005.

The counter closed at S$0.72 on Friday.

GK Goh Holdings Ltd 

GKG Investment Holdings Pte Ltd recorded its first on-market trade in stock and share brokerage services provider GK Goh Holdings since September 2015 with 43,000 shares purchased on June 15 at S$0.826 each.

The trade increased its direct holdings to 195.552 million shares or 59.86 per cent of the issued capital. The purchase was made on the back of the 13 per cent rebound in the share price since the last week of January from S$0.729.

The group previously acquired 1.55 million shares from January to September 2015 at S$0.95 to S$0.82 each or an average of S$0.92 each and 5.2 million shares from June 2011 to December 2014 via open and off-market trades at S$0.60 to S$0.94 each or an average of S$0.82 each.

Prior to its purchases since 2011, the shareholder bought 1.04 million shares from March to December 2010 at an average of S$0.58 each, 2.74 million shares from March to December 2009 at S$0.42 to S$0.61 each or an average of S$0.445 cents each and 5.76 million shares from March 2007 to September 2008 at S$1.17 to S$0.70 each or an average of S$1.02 each.

The counter closed at S$0.81 on Friday.

Amendment note: An earlier version of this article misidentified the buyer of 30,000 Pacific Radiance shares as Choo Boon Tiong. The buyer of the shares was in fact Goh Chong Theng. The article above has been revised to reflect this.

  • The writer is managing director, Asia Insider Limited.
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