HK's Next Digital hits 12-yr high after campaign to support arrested owner

Most Kwai Chung

11/08/2020 08:49

HONG KONG, Aug 11 (Reuters) - Shares of media group Next
Digital Ltd  0282.HK  hit their highest since Sept. 2008 on
Tuesday, spurred by an online campaign to show support for its
detained owner, Hong Kong media tycoon Jimmy Lai.
    At their height, shares rose 668.6% to HK$1.96 on Tuesday.
They retreated to around HK$1.50, but still led gains on the
Hong Kong bourse as the third most actively traded stock. Since
the close on Friday, they have gained more 2,078%.
    Police on Monday detained Lai, along with other executives
of his media company in the highest-profile arrest under a
national security law imposed by Beijing, which critics say 
crushes freedoms in Hong Kong.  urn:newsml:reuters.com:*:nL4N2FD0D4
    Pro-democracy activists have started a campaign to encourage
buyers for Next Digital shares and for the Apple Daily
anti-government tabloid it publishes. 
    More than half a million copies of the paper were published
on Tuesday, up from the usual 100,000. Buyers queued in the
early hours and vendors had to re-order issues before the
morning commute time.
    One post on a local forum used by pro-democracy supporters
said: "Freedom is priceless, use $$ to support Jimmy Lai."
    Next Digital's market value has risen from HK$197.7 million
($25.42 million) early on Monday to HK$5.17 billion ($666.71
million).
    The media group said in a bourse filing its operations have
continued normally and it did not expect the arrests to impact
its financial position.
    Brokers said the surge was also driven by speculation Lai
may sell the business.
    "Speculation of sale of control and its low price level
provided day traders a convenient excuse to bet on the stock," a
strategist from a local brokerage said, asking not to be named.
    Another local media stock, Most Kwai Chung Ltd  1716.HK  has
also jumped 292% so far this week. 
($1 = 7.7500 Hong Kong dollars)

 (Reporting by Donny Kwok and Clare Jim; editing by Barbara
Lewis)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))