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Director’s share transaction related to stock gain & volatility in KLSE

Director’s Share Transaction ( A common practice in Malaysia corporate scene)

In Bursa Malaysia, director’s share transactions are closely monitored by investors as they can be an indication of the company’s future prospects. Such transactions can provide insights into the confidence of the management team and their expectations of the company’s financial performance.

One example of a company that has seen significant director’s share transactions recently is Genting Berhad, a Malaysian conglomerate with businesses in leisure and hospitality, power generation, and oil and gas exploration. The company’s Chairman and Chief Executive Officer, Tan Sri Lim Kok Thay, has been buying Genting’s shares consistently in 2021, signaling his confidence in the company’s future prospects. In August 2021, Tan Sri Lim purchased 4.4 million shares in Genting, bringing his total stake in the company to 41.11%.

Another example is Cypark Resources Berhad, an environmental engineering and renewable energy company. In September 2021, two of the company’s directors, Datuk Chiau Beng Teik and Datin Paduka Chew Yin Keen, acquired a total of 5 million shares in the company. This brings Datuk Chiau’s total shareholdings in Cypark to 109.7 million shares, while Datin Paduka Chew’s total shareholdings increased to 68.12 million shares.

Director’s share transactions can also signal a change in the management team or ownership structure of a company. In September 2021, AirAsia Group Berhad’s co-founder, Tony Fernandes, sold off 90 million shares in the company, reducing his stake in AirAsia to 11.72%. This move came amid rumors of a potential merger between AirAsia and Malaysia Airlines.

It is worth noting that not all director’s share transactions are positive indicators. For example, in August 2021, Eco World Development Group Berhad’s Executive Chairman, Tan Sri Liew Kee Sin, sold off a total of 29.28 million shares in the company. This move sparked concerns among investors, leading to a decline in the company’s stock price.

If you are looking to invest in a company and want to gain insights into the company’s future prospects, one of the ways to do so is by tracking insider purchases. Insider purchases refer to transactions in which a company’s management or significant shareholders buy shares in the company.

A shareholder changes screener can be a useful tool to track insider purchases. Such a screener can help you identify changes in share ownership by company insiders, including company executives, board members, and significant shareholders. Here are some tips on how to use a shareholder changes screener to track insider purchases:

Identify a reputable shareholder changes screener: Look for a reputable screener that allows you to filter and search for specific insider transactions, such as open-market purchases by company executives or large shareholders. One such screener is TradeVSA Insider Buy and Sell screener available in VSA360 dashboard, below is an example how investors are able to find such trading opportunities.

 

 

VSA360 also details the filing by insider buying in KLSE using TradeVSA buying and selling guide chart which we believe every trader and investors should have access to them.

In conclusion, director’s share transactions are closely monitored by investors in Bursa Malaysia as they can provide valuable insights into a company’s future prospects. While such transactions can be positive indicators of management’s confidence in the company’s financial performance, investors should also be aware of negative signals that may be associated with such transactions. As with all investment decisions, it is important to conduct thorough research and analysis before making any investment decisions.

To sign up for free 10 days worth RM288 to TradeVSA Dashboard and Insider Buying and selling screener chart, click here.

Or goto https://tradevsa.com/tradevsa-demo-account/

 

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Why insider trading in KLSE works and give handsome profit.

Insider buying in Bursa Malaysia

Insider buying in Bursa Malaysia refers to the purchase of shares of a company’s stock by its executives, officers, directors, or other insiders who have access to confidential information about the company. Insider buying is considered to be a bullish sign for a company’s stock, as it indicates that the insiders have confidence in the company’s future prospects and believe that the stock is undervalued. From our TradeVSA research we have seen directors like Tan Sri Vincent Tan Chee Yioun, Tan Sri Lim Wee Chai taking considerable stakes in their own company after disclosing as per regulation CA2016.

 

In Bursa Malaysia, insider buying is regulated by the Malaysian Securities Commission (SC) and is governed by the Securities Commission Act 1993 and the Code of Corporate Governance. According to the SC, insiders are required to report their dealings in the company’s securities within five days of the transaction. This information is then made publicly available, providing transparency and helping to prevent insider trading.

 

Here are some the performance likely for these insider buying in KLSE.

  • Increased demand will lead to higher prices in futures
  • Improved market sentiment by director dealing can improve investor sentiment
  • Improved financial performance gives the business owner, stakeholders to take fresh position in their company

 

How to find them eg. insider buying in Bursa Malaysia.

You can find information about insider buying in Bursa Malaysia by accessing the Bursa Malaysia website. Here are the steps you can follow:

  1. Go to the Bursa Malaysia website (https://www.bursamalaysia.com/).
  2. Click on “Market Data” and then “Insider Trades”.
  3. You will be directed to the Insider Trades page where you can find information about insider buying and selling of securities.
  4. On this page, you can view the latest insider trades by selecting the date range and security you are interested in.
  5. The Insider Trades page will show you the insider transactions, including the name of the insider, the security name, the volume of shares bought or sold, and the price per share.

 

Alternatively, using VSA360 dashboard, you can scan the latest filing by insider buying using TradeVSA special screener. Here is an example of the screen results.

 

 

It is important to note that while insider buying can be a positive sign, it is not a guarantee of future performance. Other factors, such as market conditions and the company’s financial performance, also play a significant role in determining a stock’s future performance. As such, it is recommended to consider insider buying as one of many factors when evaluating a stock investment in Bursa Malaysia.

VSA360 also details the filing by insider buying in KLSE using TradeVSA buying and selling guide chart which we believe every trader and investors should have access to them.

The Power of Insider Buy & Sell Chart

 

 

To sign up for free 10 days worth RM288 to TradeVSA Dashboard and Insider Buying and selling guide chart, click here.

Or goto https://tradevsa.com/tradevsa-demo-account/

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