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BUYING activity rebounded while the sales among directors were flat last week based on filings on the exchange from Aug 3 to 7. A total of 13 companies recorded 22 purchases worth $85.3 million versus four firms with eight disposals worth $40.7 million.
The buy figures were sharply up from the previous week's six companies, eight trades, and $2.6 million. On the sales side, the number of firms and trades were consistent with the previous week's five companies and seven disposals. The value of disposals, however, was sharply up from the previous week's turnover of $1.7 million.
While selling among directors was flat last week, fund managers were heavy sellers for the second straight week. The continued rise in the market prompted several institutions to lower their positions in Koda Ltd, InnoTek Limited, CWT Limited, HTL International, and Frasers Centrepoint Trust. Also on our sell alert is Asia Water Technology as EGN Nominees Pte Ltd recorded its first sale since it became a substantial shareholder in May.
Koda Ltd
Sales by Blackhorse Asset Management in original design furniture manufacturer Koda Ltd since June 2008 totalling 9.3 million shares lowered its deemed stake by 58 per cent to below 5 per cent of the issued capital. The disposals were made from June 19, 2008 to Aug 3 this year at estimated prices of 35 cents to 10 cents each.
The group last sold 126,000 shares on Aug 3 at an estimated price of 19 cents each, which reduced its holdings to 6.6 million shares or 4.9 per cent. The group previously sold 4.5 million shares from Feb 17 to May 15 at estimated prices of 10 cents to 16.5 cents each.
The sales since June 2008 were made on the back of the sharp drop in the share price since February 2008 from 78.5 cents. Not surprisingly, the disposals were made at sharply lower than the fund manager's purchase prices based on the 5.5 million shares that the group acquired from February to May 2007 at estimated prices of 84 cents to 96 cents each.
Blackhorse Asset Management became a substantial shareholder in January 2007 after it subscribed for seven million shares via placement at 73.5 cents each, which raised its interest by 225 per cent to 9.1 per cent. The counter closed at 19 cents on Friday.
InnoTek Limited
Sales by Thai Focused Equity Fund Ltd in suspension assemblies manufacturer InnoTek Limited since June totalling 34.2 million shares reduced its deemed holdings by 75 per cent to below 5 per cent of the issued capital. The disposals were made from June 1 to Aug 4 in 24 transactions at estimated prices of 20 cents to 31 cents each.
The sales in the past two months accounted for 18 per cent of the stock's trading volume. The group last sold 2.3 million shares from Aug 3 to 4 at estimated prices of 28 cents to 31 cents each, which lowered its stake to 11.5 million shares or 4.9 per cent. The group previously sold 28.2 million shares from July 14 to 31 at estimated prices of 23 cents to 29 cents each and 3.7 million shares from June 1 to 12 at an estimated price of 21 cents each.
The disposals by Thai Focused Equity Fund since June were made at sharply lower than its previous sale prices based on the 5.6 million shares that the group sold in June 2007 at estimated prices of $0.82 to $1.06 each. The counter closed at 31.5 cents on Friday.
CWT Limited
Morgan Stanley unloaded more shares of logistics firm CWT Limited with 5.6 million shares sold on July 31 at an estimated price of 61 cents each. The trade reduced its deemed holdings by 11 per cent to 45.9 million shares or 8 per cent.
The group previously sold 4.8 million shares on May 27 at an estimated price of 50 cents each and 1.4 million shares in March 2008 at an estimated price of 87 cents each. Prior to the disposals since March 2008, Morgan Stanley acquired 2.5 million shares in October 2007 at $1.27 each. The stock closed at 63.5 cents on Friday.
HTL International Holdings Limited
Brandes Investment Partners, LP has reduced its holdings in leather furniture manufacturer HTL International Holdings by 40.6 million shares or 59 per cent since February 2008. The disposals were made from February 2008 to July this year at estimated prices of 42 cents to seven cents each.
The group last reported a disposal-related filing on July 30 of 3.4 million shares at an estimated price of 25 cents each, which lowered its deemed stake to 28.6 million shares or 6.9 per cent. The group previously reported a disposal-related filing on June 29 of 8.5 million shares at an estimated price of 27 cents each and another on June 25 of 3.4 million shares at an estimated price of 26 cents each.
Prior to the sales since February 2008, Brandes Investment acquired a net 48.3 million shares from May 17, 2007 to Jan 30, 2008 at estimated prices of 94 cents to 39 cents each. The group reported an initial filing on May 16, 2007 of two million shares at 57 US cents each (the quoted price was likely in US$ as the counter closed at 86 cents on that day), which raised its interest to 5.02 per cent.
The sentiment is not entirely negative this year as executive chairman of the board Phua Yong Pin, chief operating officer Por Khay Ti, and directors David Roderick Macleod, Steven Tan Hong Leong, and Tay Kheng Hee acquired a combined 1.5 million shares from Jan 7 to March 12 at an average of 8.6 cents each. Chairman Phua Yong Pin, along with five other directors, also acquired a combined 2.1 million shares from November to December 2008 at an average of 8.5 cents each. The counter closed at 21.5 cents on Friday.
Frasers Centrepoint Trust
Stichting Pensioenfonds Zorg en Weizijn recorded its first sale in retail real estate investment trust Frasers Centrepoint Trust since it became a substantial shareholder in July 2006 with a disposal-related filing on Aug 6 of 3.3 million units at an estimated price of $1.00 each. The trade reduced its direct holdings to 36.9 million units or 5.9 per cent of the issued capital.
The rare disposal was made on the back of a 64 per cent rise in the unit price since March from 61 cents. Stichting Pensioenfonds previously reported a purchase-related filing on July 13, 2006 of 2.2 million units at an estimated price of $1.04 each. The group became a substantial shareholder on July 5, 2006 after it subscribed for an initial 35 million shares or 5.7 per cent in the IPO at $1.03 each.
The sentiment is not entirely negative this year as CEO Christopher Tang Kok Kai purchased 270,000 units from Feb 4 to June 19 at 65 cents to 84 cents each. Mr Tang last bought 120,000 units on June 19 at 84 cents each, which boosted his deemed stake by 24 per cent to 620,000 units or 0.1 per cent. Mr Tang also has direct interest of 50,000 units. Prior to those trades, he acquired 100,000 units in April 2008 at $1.25 each and 100,000 units in May 2007 at $1.78 each. The unit trust closed at $1.00 on Friday.
Asia Water Technology Ltd
EGN Nominees Pte Ltd recorded its first sale in water purification treatment systems provider Asia Water Technology since it became a substantial shareholder in May with 482,000 shares sold on Aug 3 at an estimated price of 10.5 cents each. The trade reduced its direct holdings to 48 million shares or 24.4 per cent.
The group previously acquired 35.9 million shares from June 5 to July 23 at estimated prices of eight cents to 13 cents each. Those purchases were hefty as they accounted for 94 per cent of the stock's trading volume. EGN Nominees became a substantial shareholder on May 26 after it acquired an initial 12.6 million shares or 6.4 per cent at eight cents each. The stock closed at 10 cents on Friday.
The writer is managing director, Asia Insider Ltd
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