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.
|Stock||Date Change||Name||Unit||Mkt Cap||Industry||Value(RM)|
|2023-02-16||Dato Goh Cheng Huat||60 M||385 M||Transportation & Logistics||21.9 M|
|2023-02-16||Mr Ang Lee Leong||2 M||218.3 M||Industrial Products & Services||710 K|
|2023-02-16||Madam Chee Wai Ying||2 M||218.3 M||Industrial Products & Services||710 K|
|2023-02-15||Tan Sri Muhammad Ikmal Opat Bin Abdullah||3 M||1.2 B||Industrial Products & Services||1.3 M|
|2023-02-15||Mr Wong Thean Soon||2 M||6.7 B||Technology||1.4 M|
|2023-02-15||Asia Internet Holdings Sdn. Bhd.||2 M||6.7 B||Technology||1.4 M|
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.
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