Big buyers behind shares jump of Next Digital

Next Digital, the owner of Apple Daily, jumped as much as 344 percent to HK$0.40 in the afternoon trading session yesterday after slumping to its record low in the morning, with turnover reaching the highest since it listed in 2000.

Shares of Next Digital fell as much as 17 percent on the arrest news, hitting a record low of HK$0.075 in the morning.

But both stock price and trading volume started to soar after the lunch break as pro-democracy supporters - including opinion leaders and financial columnists - on social media called on investors to buy the stock.

Next Digital closed 183.33 percent higher at HK$0.26, the best performer among all stocks trading on Hong Kong stock exchange.

More than 54 percent of its total issued shares - or 1.44 billion shares - were traded yesterday, with a full-day turnover of HK$393.11 million.

Jimmy Lai controls a 71.26 percent stake in Next Digital, while other directors hold 0.58 percent, according to its annual report posted in July.

Excluding financial key opinion leaders who have posted the screenshot of their stock purchase-record on social media, other investors who pushed the stock price higher may include some sentiment-driven retail investors, said Kenny Wen, a strategist at Everbright Sun Hung Kai.

He presumed that some wealthy investors, even institutional investors, might buy the stock as they are speculating Next Digital will be sold under pressure.

Dickie Wong, executive director of research at Kingston Securities, said it is difficult to understand the roller-coaster movement. But he reckoned pro-democracy retail investors were not enough to support the price surge.

Shares of other local media companies also outperformed, with Most Kwai Chung rising 47.06 percent to HK$0.75.

avery.chen@singtaonewscorp.com