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Director acquisitions cover a broad group of industries
FOR the five trading sessions ended Sept 6, the Straits Times Index (STI) declined 2.4 per cent, with the Nikkei 225, Hang Seng and S&P/ASX 200 Indices averaging a 2.6 per cent decline.
For the 2018 year through to Sept 6, the STI generated a 4.5 per cent decline in total return, compared to the three benchmarks which have averaged a flat performance. While the Nikkei 225 has been Asia-Pacific's best performing benchmark in the year thus far, the least performing benchmark has been China's CSI 300 Index with a decline of 19 per cent in total return.
Following a surge in share buybacks in August, there were 21 stocks conducting buybacks over the five sessions ending Sept 6. The consideration totalled S$29.5 million which was down from S$67.2 million for the preceding five sessions.
The buyback tally was again led by DBS Group Holdings which bought back 650,000 shares on Sept 6 for a consideration of S$16 million.
Goodland Group commenced its buyback mandate which was approved back on Jan 25. The Singapore based premier lifestyle property developer specialising in residential developments bought back 100,000 shares on Sept 4.
Director and substantial shareholder transactions
The five sessions spanning Aug 31 to Sept 6 saw more than 50 primary-listed stocks lodge 165 changes in director interests or substantial shareholdings. This was an increased rate from the preceding week, with the broad group of filings spanning a multitude of sectors and market capitalisation sizes.
There were 23 company director acquisitions and no disposals filed for the third week in a row, while substantial shareholders filed 26 acquisitions and eight disposals.
Cache Logistics Trust
ARA Asset Management Limited (ARA) raised its stake in Cache Logistics Trust (Cache) to 9.21 per cent through a married deal with CWT. As reported by The Business Times, CWT, which was acquired by the Chinese HNA Group last year, sold all its 43.66 million units in the warehouse owner to ARA for S$0.74 per unit on Aug 30.
ARA Trust Management (Cache) Limited (the manager) is a wholly-owned subsidiary of ARA. On Sept 3, the manager's chairman and non-executive director, Lim How Teck, acquired 100,000 units of Cache at S$0.74 per unit, taking his stake to 0.1025 per cent. He is also the chairman of Heliconia Capital Management Pte Ltd and NauticAWT.
Hai Leck Holdings
Between Sept 3 and 5, Hai Leck Holdings (Hai Leck) founder and executive chairman, Cheng Buck Poh acquired a total of 447,100 shares for a consideration of S$258,536. This took his total interest in the integrated services provider to 83.56 per cent.
His preceding acquisitions were for 456,100 shares in April 2017 and 500,000 shares in September 2016. He is responsible for charting corporate directions and strategies for the group.
On Sept 3, UOL Equity Investments Pte Ltd acquired 50,300 shares of United Industrial Corporation (UIC) for a consideration of S$155,916 at an average price of S$3.0997 per share. This took the total stake in UIC that is held by its chairman, Wee Cho Yaw, to 50.0781 per cent.
Between Sept 3 and 5 Henry Wee increased his substantial shareholding in Imperium Crown from 21.93 per cent to 22.83 per cent. With a total consideration of S$245,940, the 7,149,700 shares were acquired at an average price of S$0.0345 per share. Mr Wee's preceding transactions were between April 30 and May 2 which saw the substantial shareholder acquire the 12.9 million shares.
On Aug 30, Evercore Multi-Strategy Global Ltd disposed of 24 million shares of Imperium Crown for a consideration of S$768,000 via a married transaction. This took Evercore's stake in the Catalist-listed property investor and developer below the substantial shareholder threshold at 4.56 per cent.
On Aug 30, UMS Holdings chairman and CEO Andy Luong acquired 250,000 shares of the precision engineering group at S$0.760 per share. With a consideration of S$190,000, this took his total stake in UMS up to 20.42 per cent. He also acquired 500,000 shares at S$0.785 per share on Aug 29.
Over two sessions (Aug 30 and Sept 5) Avi-Tech Electronics CEO Lim Eng Hong acquired a total of 383,800 shares of the stock for a consideration of S$140,506. This increased his total stake in the total solutions provider for the semiconductor, electronics and life sciences industries, to 35.6745 per cent. Mr Lim also acquired 316,200 shares for a consideration of S$117,494 on Aug 29.
EC World Reit
On Aug 31, EC World Asset Management Pte Ltd lead non-executive independent director Chan Heng Wing acquired 100,000 units of EC World Reit at S$0.69 per unit. This took his direct stake in the Reit to 0.038 per cent.
Mr Chan serves as the non-resident High Commissioner to the People's Republic of Bangladesh. He is also an independent non-executive director of Shanda Games Ltd (a Nasdaq listed online game developer), Banyan Tree Holdings and Frasers Centrepoint.
Aoxin Q & M Dental Group
On Aug 31, Quan Min Holdings Pte Ltd acquired 192,200 shares of Aoxin Q & M Dental Group for a consideration of S$44,045.
This took Ng Chin Siau's substantial shareholding in the Catalist-listed stock from 43.46 per cent to 43.51 per cent. Dr Ng is the founder and group CEO of Q & M Dental Group, responsible for the corporate direction of the group.
On Sept 3, Miyoshi CEO Andrew Sin Kwong Wah acquired 620,500 shares of the Catalist-listed company for a consideration of S$34,909. This took his total stake in Miyoshi to 26.7 per cent. Mr Sin was first appointed to the Miyoshi board on Sept 24, 1991.
Between Sept 3 and 4, BM Mobility executive chairman Koo Ah Seang acquired 2 million shares for a consideration of S$22,000. This took his stake in the stock from 11.43 per cent to 11.84 per cent.
A conversion of warrants into 10 million shares by BM Mobility executive director and CEO Tay Wee Kwang on Sept 6 saw Mr Koo's stake in the company subsequently reduced to 11.60 per cent.
Mr Koo has more than 20 years of experience and knowledge in general and financial management and corporate restructuring. BM Mobility was placed on the Watch-List due to financial entry criteria with effect from June 5, 2018. In its outlook published with its Q2FY18 results on Aug 8, the company noted that its Revgo branded electric bikes were successfully launched in the University of Malaya. The Revgo branded electric bikes are intended to spur the Green Energy business.
On Sept 4, Enviro-Hub Holdings executive chairman Raymond Ng acquired 350,000 shares of the environmental management solutions group for a consideration of S$9,100. This took his total stake in the stock to 39.87 per cent. Mr Ng is responsible for the group's overall management, business development, investment decisions as well as strategic direction and planning.
- The writer is the market strategist at Singapore Exchange (SGX). To read SGX's market research reports, visit sgx.com/research.