Four Watches of Switzerland directors have shown their confidence in the business by buying almost £890,000 of shares.

The group’s chief finance officer and chairman along with two non-executive directors bought the stock on Friday.

Shares in the Leicester-based group – which also includes Mappin and Webb, Goldsmiths jewellers and Mayors in the States – dropped 28 per cent on August 25 as investors reacted to Rolex’s acquisition of the Swiss jeweller and watch manufacturer Bucherer.

At the time, Watches of Switzerland tried to play down the news saying Bucherer was a long-standing retail partner of Rolex and that it was not a strategic move into retail by Rolex.

It also said there would be no change in the way Rolex allocated or distributed merchandise.

The share price has started to rise since then.

In a market announcement, the group said chief finance officer Anders Romberg had bought 100,000 shares at 585p, worth £584,700, while chairman Ian Carter had bought 35,000 shares at prices from 582.5p to 589.5p, worth £205,690 in total.

Non-executive directors Tea Colaianni and Robert Moorhead had bought 8,500 and 8,495 shares respectively, worth £49,835 and £49,628.

Russ Mould, investment director at online broker AJ Bell, sent their actions had put out a positive message.

He said: “The chief financial officer, chair and two non-executive directors of Watches of Switzerland bought a combined £889,853 worth of shares following last month’s major sell-off.

“The shares slumped after Rolex bought one of Watches of Switzerland’s rivals, raising fears that the acquired business would get preferential treatment with regards to stock and that Rolex now had a channel by which to market direct to consumers.

“Directors buying in unison after a big share price slump can send a positive signal to the market, particularly as they are the ones who should know the business best.”