Directors buy back shares as SET drops to 1,300 mark
Executives of large SET-listed companies are now buying back shares after the market suffered a correction from the Covid-19 pandemic, according to one expert.
Several executives have bought back shares after the SET fell to around the 1,300 mark this week.
According to the latest report on executives’ securities and derivatives trade, the number of transactions increased by 32. Most of that increase came from executives buying back shares under their control on August 17-18 when the SET fell to 1,315 from 1,350 last week.
Leading the way was Jay Mart (JMART) executive Ekachai Sukhumvitaya, who bought back 1.8 million shares at an average Bt13.38 and 1 million shares at Bt13.27, totalling Bt37 million.
Meanwhile, six executives at Sri Trang Gloves (Thailand) (STGT) – Oralak Nakin, Jarinya Jirojkul, Kitichai Sincharoenkul, Vitanath Sincharoenkul, Sarana Boonbaichaiyapruck and Anan Pruksanusak – bought back 130,000 shares at an average Bt67 per share, totalling Bt8.7 million.
Chone Sophonpanich, a Bangkok Life Assurance (BLA) executive, bought back 68,900 shares at Bt15.40 per share, accounting for Bt1.06 million, while Yuth Chinsupakul, Eastern Power Group (EP) executive, bought back 1.09 million shares at Bt4.09, totalling Bt4.5 million.
Following the market correction from the end of July to the start of August, Minor International (MINT) executives William Heinecke and Niti Osathanugrah bought back 17.32 million shares at an average Bt17.50, and worth Bt303 million.
However, Heinecke also sold 350,000 shares at Bt20.50 per share, amounting to Bt7.1 million.
Meanwhile, Asia Plus Group Holdings (ASP)’s Kongkiat Opaswongkarn bought back 4 million shares at Bt1.8 per share, totalling Bt7.2 million.
Nuttachart Mekmasin, a research analyst at Trinity Securities, said market conditions weren’t the only reason behind the buybacks by directors.
"The index may rise or drop from the 1,300 support line in the third quarter, and could fall below 1,300 in the fourth quarter given multiple risks," he said.
He predicted the index would slide in Q3 due to lack of positive sentiments, but would not fall below 1,260 given the uptick rule, debt payment moratoriums and liquidity injections.
"However, we expect the index to fall below 1,300 after the abovementioned measures expire, while it could also come under pressure if the trade war escalates after the US presidential election in November," he said.
