Buying maintains pace, selling resurfaces after idle week

BUYERS were active for the third straight week while selling among directors rebounded after recording no sales in the previous week. A total of 24 companies recorded 39 purchases worth S$5.47 million versus two firms with three disposals worth S$3.3 million, based on Singapore Exchange filings in the second week of September. The number of companies and trades on the buying side were up from the previous week's 21 firms and 36 purchases. The buy valuewas sharply down from the previous week's purchases worth S$17.3 million.

Buyback activity remained high with 13 companies posting 42 repurchases worth S$10.96 million. The number of firms was unchanged while the number of trades and value were down from the previous week's 52 transactions worth S$13 million.

The bulk of the significant insider trades were purchases with acquisitions in Aspial Corp, Sim Lian Group, San Teh, Hong Fok, Neo Group and SunMoon Food. Among substantial shareholders, there were key buys in Tung Lok Restaurants and Sincap Group.

Aspial Corp

There was a buyback and a purchase by CEO and managing director Koh Wee Seng in jewellery manufacturer and residential property developer Aspial Corp with a combined 5.2 million shares purchased on Sept 11 at an average of 42.2 cents each. The trades were made on the back of a 12 per cent drop in the share price since May from 48 cents. Aspial bought back 5.04 million shares at 42 cents each on Sept 11, its first buyback since March 2011. The group previously acquired 868,000 shares from February to March 2011 at an average of 31.5 cents each; 945,000 shares from October 2008 to June 2009 at an average of 25.7 cents each; and 1.58 million shares from December 2006 to September 2007 at an average of 69.2 cents each.

Mr Koh purchased 160,000 shares on Sept 11 at 43 cents each, increasing his direct holdings to 326.500 million shares or 17.96 per cent of the issued capital. He also has deemed interest of 1.071 billion shares or 59.08 per cent. He previously acquired 3.26 million shares from Feb 21 to 25 at an average of 45.9 cents each; 9.13 million shares in November 2013 at an average of 41.9 cents each; and 32.66 million shares from February to August 2013 at an average of 43.2 cents each. The counter closed at 42.5 cents on Friday.

Sim Lian Group

CEO Kuik Sin Pin picked up where he left off in construction firm and property developer Sim Lian Group in May with 251,000 shares purchased on Sept 5 at 89 cents each. The trade increased his direct holdings to 12.682 million shares or 1.26 per cent of the issued capital. He previously acquired 57,000 shares on May 16 at 86 cents each. The purchases were made on the back of a rebound in the share price since February from 76 cents.

Mr Kuik's purchases this year were made at higher prices than his previous acquisitions, based on the 83,000 shares he acquired in January 2013 at 75.5 cents each and 3.97 million shares from January 2002 to December 2012 at 24-74 cents each, or an average of 36.4 cents each. The counter closed at 89 cents on Friday.

San Teh

Chairman and CEO Kao Chuan Chi acquired shares of building materials manufacturer San Teh at lower than his sale price in October 2010. He bought 400,000 shares from Sept 8 to 9 at 30 cents each. The trades increased his direct holdings to 14.294 million shares or 4.18 per cent of the issued capital. They were made on the back of a 9 per cent drop in the share price since April from 33 cents. The counter is also sharply down since November 2011 from 61.5 cents. He previously sold 112,000 shares in October 2010 at 40 cents each. Prior to that disposal, Mr Kao acquired 538,000 shares in May 2010 at an average of 32.4 cents each. Prior to his trades since 2010, Mr Kao unloaded 200,000 shares from December 2005 to January 2006 at an average of 33.1 cents each. He was appointed chairman on Sept 1 but has been a member of the group since 1998. The counter last closed at 29 cents (on Thursday) .

Hong Fok Corp

Joint chairman and joint managing director Cheong Sim Eng resumed buying shares of property play Hong Fok Corp at higher than his acquisition prices from May 2010 to March this year. He bought 250,000 shares on Sept 10 at S$1.03 each, increasing his direct holdings to 93.174 million shares or 11.77 per cent of the issued capital. He also has deemed interest of 40.923 million shares or 5.17 per cent. Although he resumed buying this month at a higher price, the acquisition was made on the back of a 9 per cent drop in the share price since July from S$1.13. He had acquired 400,000 shares on March 6 at 72.3 cents each; 200,000 shares on Jan 9 at 70 cents each; and 659,000 shares from April to December 2013 at an average of 69 cents each. Mr Cheong also acquired 170,000 shares from March to April 2012 at an average of 53.5 cents each; 2.6 million shares from March to April 2011 at an average of 57.5 cents; and 245,000 shares from May to September 2010 at an average of 55 cents each. The stock closed at S$1.005 on Friday.

Neo Group

Founder, chairman and CEO Neo Kah Kiat recorded his first on-market trade in food catering firm Neo Group since October 2013, purchasing 375,000 shares on Sept 11 at 99 cents each. This increased his direct holdings to 101.117 million shares (70.22 per cent of the issued capital). He has deemed interest of 8.064 million shares (5.6 per cent). The trade was made on the back of the 26 per cent rebound in the share price since March from 78.5 cents (and up sharply up from 56.5 cents in the last week of October 2013). On Sept 10, Neo Group announced a 9.1 per cent drop in first-half profit to S$2.516 million.

Mr Neo acquired 460,000 shares in October 2013 at 51 cents and 582,000 shares in September 2012 at an average of 33.4 cents.

Independent director Kevin Ng How Hwan purchased 50,000 shares on March 28 at 92 cents each, boosting his direct stake to 439,000 shares or 0.30 per cent. He had acquired 64,000 shares on Jan 24 at 80 cents each and 150,000 shares from September to December 2013 at an average of 57 cents. The purchases by Mr Ng since September 2013 are his first on-market trades since the stock was listed in July 2012. The purchase prices were sharply higher than the IPO's 30 cents. The counter last closed at 95.5 cents

SunMoon Food Co

Chairman Gary Loh Hock Chuan picked up where he left off in integrated fresh fruit and dehydrated produce firm SunMoon Food in July with 300,000 shares purchased from Sept 10 to 11 at an average of 13 cents each. The trades increased his deemed holdings to 125.545 million shares or 39.38 per cent of the issued capital, and were made on the back of the 12 per cent rebound in the share price since the last week of July from 11.6 cents. He acquired 500,000 shares on July 18 at 12 cents each and 100,000 shares in November 2013 at 20 cents each (adjusted for 100-to-1 share consolidation in July 2014). Mr Loh sold 33.3 million shares in September 2013 at an average of 20.2 cents each. The counter closed at 13 cents on Friday.

Tung Lok Restaurants

Tee Yih Jia Food Manufacturing Pte Ltd recorded its first trade in restaurant chain operator Tung Lok Restaurants since August 2012 with 348,000 shares purchased on Sept 11 at 12 cents each. The trade increased its direct holdings to 49.383 million shares or 18.0 per cent of the issued capital, and was made on the back of the 37 per cent drop in the share price since May from 19.1 cents. The counter is also sharply down since November 2013 from 25.4 cents. The shareholder previously acquired four million shares from June to August 2012 at an average of 20.9 cents each and 1.55 million shares from December 2010 to January 2011 at estimated prices of 25 cents to 21 cents each. The group became a substantial shareholder in April 2004 after it subscribed for an initial 20 million shares or 14.29 per cent at 13.5 cents each. Overall, Tee Yih Jia Food's stake is up by 26 per cent since that initial filing in April 2004. The counter closed at 11.9 cents on Friday.

Sincap Group

Substantial shareholder Ng Han Meng acquired more shares of alumina and thermal coal trader Sincap Group at sharply higher than his initial filing price in July with three million shares purchased on Sept 11 at 15 cents each. The trade increased his direct holdings by 8 per cent to 39 million shares or 11.1 per cent of the issued capital. The acquisition was made on the back of the 43 per cent rise in the share price since July 8 from 10.5 cents. Mr Ng became a substantial shareholder on July 1 after he acquired an initial 36 million shares or 10.26 per cent via placement at seven cents each. The counter closed at 15.1 cents on Friday.

The writer is managing director, Asia Insider Ltd