Xian Leng Holdings Bhd (-ve)

TRADING of shares in Xian Leng Holdings Bhd (fundamental: 1.2/3, valuation: 0.3/3), which closed half a sen or 0.72% lower at 69 sen, triggered our momentum algorithm yesterday for the fifth time since October 2019.

At the closing bell, Xian Leng recorded a total trading volume of 3.41 million shares, sharply higher compared with its 200-day average of 109,445 shares.

The company recently announced plans to diversify into the edible bird’s nest business to mitigate the risk of overdependence on its existing core business in fish farming, which is subject to uncertainties arising from unpredictable weather conditions in Malaysia.

Xian Leng’s unit signed an agreement with bird’s nest industry expert Tan Wei Chun, whom it said will provide the group with the necessary experience, expertise, and knowledge in the edible bird’s nest business.