Management, directors of local listcos scoop up shares as more stocks hit 52-week lows

DIRECTORS and members of management at several Singapore-listed companies have been actively picking up shares amid general weakness in market sentiment, with many counters now close to 52-week lows.

Market watchers said this indicates confidence in these companies’ prospects, and sentiments that the respective stocks are undervalued. Counters with a large volume of insider buys could also be up for privatisation, they added.

Bloomberg data shows 331 out of the 668 counters with a primary listing on the Singapore Exchange (SGX) have hit their 52-week lows this year. Of these, 27 counters have seen significant insider buying this year – either of at least 500,000 shares, or shares that account for more than 0.5 per cent of the counter’s total trading volume.