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Institutional selling is nothing special in these markets but, in common with private investors, many institutions are being pressured into selling because the market is seen to be falling. Judging whether that is the case is an inexact science, to say the least. But the appearance of directors who are prepared to put their money where their mouth is often suggests that recent share price collapses could be more of an opportunity than a warning.

Avesco activity

One of the most significant bouts of director dealing was seen at corporate media presentations specialist Avesco. While Barclays sold the last of its stake and Jupiter Asset Management reduced its holding from 17 to 9 per cent, newly-installed chairman Richard Murray-Obodynski more than doubled his holding from 6.3 to 14.2 per cent. Murray has now spent more than £1.2 million, at prices ranging from 100p to 112.5p, on the shares since moving up from deputy chairman. The price is now 104p.

Avesco's pre-tax profits fell from £12.7 million to £1.5 million last year, but it is expected to double that to £3.4 million this year, leaving the group on a prospective p/e of more than 7. Chief executive David Nicholson and the three non-executives have also bought, although in much less bulk.

Aim-listed CA Coutts, a company that helps retailers with their in-store displays, was in the same boat. While Coutts saw the father-and-son team at the company's helm – former chairman Norman Essex and his successor and chief executive Robert – both buying, Merrill Lynch's Alpha Special Situations Fund got rid of all of its 565,000 shares. The director buying (in which deputy chairman Stuart Alexander participated) added up to only 61,940 shares, whose value is just off their 52-week low at 50.5p. Coutts released somewhat disappointing results on 18 September, immediately before all this activity.

Paddy punts

A fair bit of director buying has also taken place across the Irish Sea. Fintan Drury, a non-executive of sports betting group Paddy Power, picked up 11,500 shares for just under €50,000 (£30,000). But Drury's spending was not in the same league as that of Brendan Murtagh, chairman and chief executive of construction products provider Kingspan. Murtagh now holds 7.5 million shares (around 5 per cent of the company) after buying 1 million at an average price of €1.54 on 10 and 11 October. His move may look a shade risky but could prove wise, given that broker Investec expects Kingspan to make €74.4 million pre-tax profits this year, putting the shares on a prospective p/e ratio of only 4.4. This rating looks miserly, even given a first-half profits downturn.

Asite board gives thumbs-up

Some interesting developments have unfolded recently at little-known Asite, with a bout of director buying in the mixer for good measure. The company, formerly known as PremiSys Technologies, has secured an agreement with the British Airports Authority for the FTSE 100 firm to use its e-procurement and inventory management services on all of its construction projects. Results have shown continuing losses, but the group is on target to reach 'cashflow-positive' status next year. Directors Peter Rogers, Walter Goldsmith and Alastair Mellon all piled in to the shares after the figures came out.

There was also significant activity at music group Sanctuary, football club Leeds United (where high-profile chairman Peter Ridsdale has bought) and iRevolution (where serial company promoter Tony Caplin has snapped up shares). InterClubNet chief executive Nick Roach was also active on the buying front.

Selling out

However, it was not all the same way. The usual predominance of board buys was countered by several sales, notably at billion pound insurance group Jardine Lloyd Thompson, where executive director John Lloyd offloaded 25,000 shares at 606p apiece. In the smaller companies arena support services group Parkwood's chief executive, Andrew Holt, sold 50,600 shares at 36p. Compact disk, video and CD packager Coral Products' Derek King lightened his holding by 61,607 shares, reaping a windfall of £23,700, while Ashtenne's Stephen Gee sold 50,000 shares at 235p on 18 October, only days after Foreign & Colonial invested £7 million in one of the company's industrial partnerships.