KUALA LUMPUR (May 26): Vegetable oil maker and trader Xinghe Holdings Bhd's counter rose as much as 16.67% or 1 sen to 7 sen today and was the third most active stock across the bourse, on what appears to be bottom-fishing by investors.

At 3.02pm, it was holding steady at 7 sen with some 29.42 million shares traded. The current price gives it a market capitalisation of RM164.4 million. 

When contacted, SJ Securities remisier KC Goh said the interest in the stock, which had seen its price drop from 13 sen on March 10 to a low of 6 sen on May 25, may be due to investors expecting its price to go up again.

“Possible bottom fishing is pushing the price up because they expect the price can slowly go back to 13 sen. Retailers and some small syndicates are playing the stock," he told the theedgemarkets.com.

“Investors only expect small price fluctuations from (such) Chinese companies,” he added.

Xinghe (fundamental: 1.2; valuation: 1.2) is a Chinese company that manufactures and markets vegetable oils.

On April 1, the stock shed two sen or 17% to 10 sen on profit taking following earlier gains after a proposed collaboration with Jordan-based firm Arab Supplier Fabrication and Retail Sdn Bhd to set up a new edible oil factory in Malaysia’s Port Klang Free Zone (PKFZ) was announced.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)