Buying bounces back, buybacks plunge

THE buying rebounded while the selling among directors remained low based on filings on Singapore Exchange during the holiday-shortened Jan 27-30 week. Buyers outnumbered sellers with 11 companies that recorded 21 purchases worth $3.7 million versus a paltry two firms with five disposals worth $350,000.

The number of companies and trades on the buying side were not far off from the previous week's five-day totals of nine firms and 23 acquisitions. The buy value, however, was sharply down from the previous week's purchases worth $7.86 million. The sales, on the other hand, were consistent with the previous week's low totals of four companies, nine disposals, and $590,000.

While the buying by directors rebounded last week, the buyback activity plunged with only three firms that posted five repurchases worth $1.83 million. The figures were sharply down from the previous week's seven companies, 18 trades and $8.08 million.

Despite the short trading week, there were several significant corporate shareholder trades. Courts Asia bought back more shares. The trades were significant as the buybacks by the group along with the purchases by a director since the last week of December have accounted for more than 14 per cent of the stock's trading volume.

On the directors' side, there were insider buys in Mapletree Greater China Commercial Trust and Neo Group. On the substantial shareholders front, there were purchases in Soilbuild Business Space Reit and disposals in Croesus Retail Trust, Ascendas Hospitality Trust and Eu Yan Sang International.

Courts Asia

There were buybacks and purchases by non-executive director Adnan Abdulaziz Ahmed AlBahar in electrical, IT and furniture products retailer Courts Asia with a combined 1.456 million shares purchased from Dec 31, 2013, to Jan 27 at an average of 62.3 cents each.

The trades accounted for 14 per cent of the stock's trading volume. Courts Asia bought back 456,000 shares from Jan 2 to 27 at an average of 61.3 cents each.

The group last bought back 100,000 shares on Jan 27 at 59 cents each. The group previously acquired 2.64 million shares from Dec 18 to 20, 2013, at 59 cents each and 1.4 million shares from Oct 21 to Nov 13, 2013, at 82 cents to 69.5 cents each or an average of 76.8 cents each.

The repurchases since October 2013 are the company's first buybacks since the stock was listed in October 2012. The group's last buyback price was lower than the IPO's 77 cents. Mr Adnan AlBahar, on the other hand, acquired an initial one million shares from Dec 31, 2013, to Jan 3 at an average of 62.8 cents each.

The shares bought represented 0.18 per cent of the issued capital. Those are his first on-market trades since listing. His purchases were made on the back of the 45-per cent drop in the share price since May 2013 from $1.145. Investors should note that CEO Terence Donald O'Connor purchased 3.56 million shares from Nov 28 to Dec 5, 2013, at an average of 64.5 cents each, which increased his holdings (direct and deemed) to 16.984 million shares or 3.035 per cent. He previously acquired 80,000 shares in November 2012 at 74 cents each. The stock closed at 58.5 cents on Thursday.

Mapletree Greater China Commercial Trust

Non-executive director Chua Tiow Chye recorded his first on-market trade in real estate investment trust Mapletree Greater China Commercial Trust (MGCCT) since June 2013 with 300,000 units purchased on Jan 29 at 80.5 cents each. The trade increased his direct holdings by 30 per cent to 1.300 million units or 0.04 per cent of the issued capital.

The acquisition was made on the back of the 17-per cent drop in the unit price since September 2013 from 96.5 cents. The purchase was also made after MGCCT announced, on Jan 23, a 16.6 per cent gain in income available for distribution to unit holders to $40.613 million for the third quarter while the results in the first nine months rose by 12.4 per cent to $125.59 million. He previously acquired 170,000 units in June 2013 at 97 cents each. The purchases since June 2013 are the director's first on-market trades since the unit trust was listed in March 2013. Mr Chua's last purchase price was lower than the IPO's 93 cents.

Investors should note that non-executive director Hiew Yoon Khong purchased 270,000 units on Nov 1, 2013 at 93 cents each, which boosted his deemed stake by 17 per cent to 1.870 million units or 0.07 per cent.

He also has direct interest of 830,000 units or 0.03 per cent. He previously acquired 600,000 units in June 2013 at 98 cents each and an initial one million units (deemed) or 0.03 per cent in March 2013 at $1.04 each. The unit trust closed at 81.5 cents on Thursday.

Neo Group

Independent director Kevin Ng How Hwan resumed buying shares of food-catering firm Neo Group at higher than his previous acquisition prices with 64,000 shares purchased on Jan 24 at 80 cents each. The trade increased his direct holdings by 20 per cent to 389,000 shares or 0.27 per cent. He previously acquired 150,000 shares from Sept 11 to Dec 13, 2013, at 51 cents to 60 cents each or an average of 57 cents each.

The purchases since September 2013 are Mr Ng's first on-market trades since the stock was listed in July 2012. The director's purchase prices were sharply higher than the IPO price of 30 cents. Investors should note that founder, chairman and CEO Neo Kah Kiat purchased 460,000 shares on Oct 1, 2013, at 51 cents each, which boosted his direct stake to 100.742 million shares or 69.96 per cent. He also has deemed interest of 8.064 million shares or 5.6 per cent. He previously acquired 582,000 shares in September 2012 at an average of 33.4 cents each. The counter closed at 81 cents on Thursday.

Soilbuild Business Space Reit

Wealthy Fountain Holdings Inc became a substantial shareholder of real estate investment trust Soilbuild Business Space Reit on Jan 29 following the purchase of 4.06 million units at 75.7 cents each. The trade increased its direct holdings by 11 per cent to 40.229 million units or 5 per cent. The initial filing was made on the back of the 9 per cent rebound in the unit price since August 2013 from 69.5 cents. The initial filing price was slightly lower than the IPO price in August 2013 of 78 cents.

Investors should note that Schroders plc reported a purchase-related filing on Oct 23, 2013, of 1.27 million units at 76 cents each, which boosted its deemed stake to 80.402 million units or 10.01 per cent. The group previously reported a purchase-related filing on Sept 9, 2013, of 747,000 units at 72.5 cents each and a purchase-related filing on Aug 22, 2013, of 3.52 million units at 71 cents each.

The group became a substantial shareholder on Aug 16, 2013, after it acquired an initial 58.738 million units or 7.31 per cent in the IPO at 78 cents each. Overall, Schroders's stake is up 37 per cent since the IPO. The unit trust closed at 75 cents on Thursday.

Croesus Retail Trust

DBS Group Holdings turned negative in retail business trust Croesus Retail Trust after increasing its position on Dec 31, 2013, with a disposal-related filing on Jan 23 of 299,000 units at 87.6 cents each. The trade reduced its deemed holdings to 25.378 million units or 5.94 per cent.

The group previously reported a purchase-related filing on Dec 31, 2013, of 300,000 units at 88.5 cents each. Prior to that acquisition, the group unloaded 12.84 million units from May 28 to Nov 27, 2013, at $1.07 to $0.86 each and a disposal-related filing on May 27, 2013, of 394,000 units at $1.07 each. Overall, DBS Group's stake is down by 33 per cent since May 2013.

Prior to those net sales, the fund manager reported a purchase-related filing on May 14, 2013, of 2.78 million units at $1.09 each. DBS Group became a substantial shareholder on May 10, 2013, after it acquired an initial 34.929 million units or 8.21 per cent of the issued capital via placement at 93.8 cents each. Investors should note that AR Capital Pte Ltd unloaded 1.286 million units on Nov 28, 2013, at 87.9 cents each, which lowered its deemed stake to 28.757 million units or 6.73 per cent.

The group previously sold 3.576 million units from Oct 14 to 16, 2013, at an average of 86 cents each. Overall, AR Capital's stake is down by 15 per cent since October 2013. Prior to those disposals, the shareholder acquired 7.54 million units from May 10 to Sept 10, 2013, at an average of 96.3 cents each and an initial filing on May 10, 2013, of 25.058 million units at $1.14 each, raising its interest to 6.13 per cent. The unit trust closed at 87.5 cents on Thursday.

Ascendas Hospitality Trust

Aberdeen Asset Management recorded a rare sale in real estate investment trust Ascendas Hospitality Trust with a disposal-related filing on Jan 27 of 1.23 million units at 72 cents each. The trade reduced its deemed holdings to 102.285 million units or 9.9 per cent. The filing was made on the back of the 14 per cent drop in the unit price since September 2013 from 84 cents. The group previously acquired a net 61.78 million units from Nov 20, 2012 to July 4, 2013 at $1.02 to $0.85 each and an initial filing on Nov 19, 2012 of 2.1 million units at 90 cents each, which raised its interest to 5.17 per cent. The unit trust closed at 72.5 cents on Thursday.

Eu Yan Sang International

Aberdeen Asset Management Asia unloaded more shares of traditional Chinese medicine (TCM) manufacturer and distributor Eu Yan Sang International with a disposal-related filing on Jan 28 of 21,000 shares at 81.5 cents each. The trade reduced its deemed holdings to 53.321 million shares or 12.0 per cent. The filing was made on the back of the 10 per cent drop in the share price since Dec 13, 2013, from 91 cents. The sale was also made after Eu Yan Sang announced, on Jan 28, a 30-per cent drop in second-quarter profit to $3.277 million.

The group previously reported a disposal-related filing on Dec 4, 2013, of 4.37 million shares at 81.3 cents each. Prior to the sales since December 2013, the fund manager acquired a net 36.5 million shares from March 2006 to May 2012 at estimated prices of 40.5 cents to 78 cents each and an initial filing in February 2005 of 58,000 shares at 39.7 cents each, which raised its interest to 5.01 per cent. The counter closed at 78 cents on Thursday.

The writer is managing director, Asia Insider Ltd