This article first appeared in The Edge Financial Daily on May 28, 2019

Malayan United Industries Bhd (+ve)

The trading of shares in Malayan United Industries Bhd (MUI) (fundamental: 0.75/3, valuation: 0.3/3) triggered our proprietary momentum algorithm yesterday for the first time since August 2018. The stock finished one sen up at 20.5 sen after 12.28 million shares crossed, nearly eight times more than its 200-day average trading volume of 1.54 million shares.

Last month, it was reported that MUI had put its flagship Corus Hotel Hyde Park in London up for sale. The group confirmed the matter and said it was in line with its strategy to rationalise the business and pare down overall bank borrowings, while adopting a more focused strategy that is lifestyle-driven and asset-light to grow its hotel business.

The group is also progressing into other segments of the hospitality business such as Laura Ashley tea rooms, cafes and spas. The rationalisation of assets, which includes selected asset disposals, is part of the group’s business transformation strategy.