KUALA LUMPUR: Vegetable oil maker and trader Xinghe Holdings Bhd rose as much as 16.67% or one sen to seven sen yesterday and was the third most active stock across the bourse, on what appears to be bottom-fi shing by investors. It closed the day at seven sen with some 47.9 million shares traded. Th e current price gives it a market capitalisation of RM164.4 million.

When contacted, SJ Securities remisier K C Goh said the interest in the stock, which had seen its price drop from 13 sen on March 10 to a low of six 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 Th e Edge Financial Daily.

“Investors only expect small price fl uctuations 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 profi t-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 the Port Klang Free Zone was announced.

This article first appeared in The Edge Financial Daily, on May 27, 2015.