More directors buying in a weak market

A WEAK market has seen more directors buying: 20 companies recorded 56 purchases worth S$11.74 million based on filings on the Singapore Exchange in the second week of 2016. The number of firms was unchanged but the number of trades and value were sharply up from the previous week's 47 acquisitions worth S$4.94 million.

Selling also rose last week with four companies recording six disposals worth S$3.17 million. The number of firms and trades were sharply up from the previous week's one company and two disposals. The value, however, was down from the previous week's sales worth S$3.9 million.

Aside from directors, buyback activity remained high with 30 companies posting 98 repurchases worth S$29.2 million. The figures were consistent with the previous week's 29 firms, 95 trades and S$30.7 million.

Last week's buying was concentrated among firms that recorded price falls with repurchases in BreadTalk Group, Global Palm Resources, Raffles Education, Sembcorp Marine and Silverlake Axis Limited. Meanwhile, not all stocks recorded buys following price falls as there were insider sales in Dutech Holdings and SHS Holdings last week.

BreadTalk Group Limited

Baked goods retailer BreadTalk Group bought back for the first time since August 2015 with 20,000 shares purchased on Jan 11 at S$1.10 each. The trade was made on the back of the 11 per cent drop in the share price since October 2015 from S$1.24. The group previously acquired 335,000 shares from Aug 19-24, 2015 at an average of S$1.12 each; and 200,000 shares from April 16-24, 2015 at an average of S$1.38 each. Prior to the repurchases since April 2015, the company acquired 483,000 shares from January to June 2014 at S$0.89 to S$1.38 each or an average of S$1.18 each; and 2.76 million shares from March 2009 to May 2012 at S$0.29 to S$0.60 each or an average of S$0.43 each.

Investors should note that Primacy Investment Limited acquired 2.8 million shares in November 2015 at S$1.16 each, which increased its direct holdings by 8 per cent to 36.627 million shares or 13.01 per cent of the issued capital. The group previously acquired 2.77 million shares on Sept 2, 2015 at S$1.26 each and 118,000 shares in December 2014 at S$1.35 each.

Prior to its acquisitions since December 2014, the shareholder acquired 14.36 million shares from January to August 2013 at S$0.695 to S$0.95 each; and an initial filing in January 2013 of 2.57 million shares at S$0.69 each, which raised its interest to 5.89 per cent. Overall, Primacy Investment's stake is up by 121 per cent since that initial filing in January 2013. The stock closed at S$1.09 last Friday.

Global Palm Resources Holdings

Palm oil and kernels producer Global Palm Resources Holdings resumed buying back at lower than its previous acquisition prices with 305,000 shares purchased from Jan 7-15 at an average of S$0.243 each. The group previously acquired 1.22 million shares from January to October 2015 at S$0.40 to S$0.30 each or an average of S$0.35 each; and 1.76 million shares from June to July 2014 at S$0.38 to S$0.49 each or an average of S$0.44 each. The counter closed at $0.25 on Friday.

Raffles Education Corporation

Private education provider Raffles Education Corporation resumed buying back at lower than its previous acquisition prices - it bought 4.673 million shares from Jan 8-15 at an average of S$0.25 each. The trades, which accounted for 80 per cent of the stock's trading volume, were made on the back of the 15 per cent drop in the share price since October 2015 from S$0.295.

The group previously acquired 15.77 million shares from August to October 2015 at an average of S$0.282 each; 13.6 million shares from May to July 2015 at an average of S$0.31 each; and 13.2 million shares from January to March 2015 at S$0.36 to S$0.305 each or an average of S$0.34 each. Prior to the buybacks since 2015, the company acquired 9.2 million shares from May to July 2014; and 56.8 million shares from May to December 2010 at an average of S$0.34 each. The counter closed at S$0.25 on Friday.

Sembcorp Marine

Global marine engineering firm Sembcorp Marine Limited recorded its lowest purchase price since it started its buyback programme in 2008 with 100,000 shares purchased on Jan 12 at S$1.52 each. The trade was made on the back of the 19 per cent drop in the share price since Dec 7, 2015 from S$1.88. The group previously acquired 600,000 shares from Oct 27 to Dec 4, 2015 at S$2.37 to S$1.87 each or an average of S$2.19 each; and 3.66 million shares from Feb 16 to May 18, 2015 at S$3.02 to S$2.91 each or an average of S$3 each.

Prior to the repurchases since 2015, the company acquired 400,000 shares in May 2014 at an average of S$3.96 each; 16.9 million shares from February 2011 to January 2014 at S$5.32 to S$3.09 each or an average of S$4.68 each; and 26.1 million shares from February to December 2008 at an average of S$3.60 each. The counter closed at S$1.385 on Friday.

Silverlake Axis

Digital economy solutions and services provider Silverlake Axis Limited picked up where it left off in October 2015 with 8.05 million shares purchased from Jan 7-12 at S$0.62 to S$0.59 each or an average of S$0.617 each. The trades, which accounted for 36 per cent of the stock's trading volume, were made on the back of the 13 per cent drop in the share price since November 2015 from S$0.71. Despite the fall in the share price, the counter is still up since the last week of October 2015 from S$0.57.

The group previously acquired 27.7 million shares from Aug 26 to Oct 22, 2015 at S$0.456 to S$0.655 each or an average of S$0.56 each and 2.7 million shares in June 2015 at an average of S$1.07 each. Prior to the repurchases since 2015, the company acquired 3.6 million shares from January to February 2012 at S$0.296 to S$0.375 each or an average of S$0.35 each; and 55.8 million shares from November 2008 to January 2009 at S$0.12 to S$0.08 each or an average of S$0.094 each. The counter closed at S$0.555 on Friday.

Dutech Holdings

Executive chairman of the board and CEO Johnny Liu Jiayan sold his entire holdings (direct interest) of 650,000 shares in ATM manufacturer Dutech Holdings from Jan 7-8 at an average of S$0.266 each. The shares sold represented 0.03 per cent of the issued capital. He also has deemed interest of 152.438 million shares or 42.76 per cent. The disposals were made on the back of the 13 per cent drop in the share price since February 2015 from S$0.305.

Despite the fall in the share price, the counter is still up since June 2012 from S$0.11. Dr Liu previously acquired 250,000 shares in December 2008 at S$0.13 each; and 600,000 shares in September 2007 at an average of S$0.36 each. The counter closed at S$0.255 on Friday.

SHS Holdings

Independent non-executive director Chew Hoe Soon unloaded shares in corrosion prevention and engineering services provider SHS Holdings after the stock fell by 14 per cent from S$0.315 on Nov 6, 2015 with seven million shares sold on Jan 8 at S$0.27 each. The trade reduced his deemed holdings by 84 per cent to 1.340 million shares or 0.22 per cent of the issued capital. He also has direct interest of one million shares or 0.16424 per cent.

He previously acquired one million shares (deemed interest) from Oct 8 to 14, 2015 and an initial one million shares (direct) on Oct 5, 2015 at an average of S$0.251 each. Prior to those purchases, the director sold 3.6 million shares in February 2014 at S$0.32 each (as a substantial shareholder). Prior to that sale, Mr Chew acquired 3.5 million shares in July 2013 at S$0.29 each; a net 8.4 million shares from May 17-22, 2013 at S$0.29 each; and an initial filing on May 14, 2013 of 5.8 million shares at S$0.30 each, which raised his interest to 6.28 per cent.

The corporate shareholder sentiment is not entirely negative in the past two months as substantial shareholder Teng Choon Kiat purchased 13.44 million shares on Dec 22, 2015 at S$0.26 each, which boosted his deemed stake by 11 per cent to 136.848 million shares or 22.47 per cent. He previously reported a purchase-related filing on Oct 9, 2015 of 29.37 million shares at S$0.253 each; and an initial filing (for the second time since May 2013) on Aug 19, 2015 of 35 million shares via off-market trade at S$0.25 each, which raised his interest by 126 per cent to 10.31 per cent. Overall, Mr Teng's stake is up by 118 per cent since his initial filing in August 2015. The counter closed at S$0.28 on Friday.