Green Ocean halted

Bursa issues query over high share price and trading volume

PETALING JAYA: Bursa Malaysia has stopped the trading in Green Ocean Corp Bhd’s shares less than half an hour before the market closed due to unusual market activity earlier in the day.

Bursa has questioned the ACE Market-listed company over the conspicuous increase in its share price and high trading volume.

Its share price soared 13.3% from 22.5 sen to 25.5 sen within the first half of yesterday’s trading.

It halted trading at 4.34pm yesterday – 11.1% higher than a day ago at 25 sen. It was the most actively traded stock with 58.8mil shares changing hands.

Green Ocean’s share price has been moving up since the end of last month, from 8.5 sen on Jan 31.

In a reply to Bursa Malaysia, Green Ocean said its subsidiary Ace Edible Oil Industries Sdn Bhd was in the advance stage of negotiation to supply the entire premium cooking oil production to a conglomerate.

“We are still in negotiations stage on the intended supply agreement. The company will make the appropriate announcement when the agreement is finalised in compliance with Rule 9.03 of Bursa Securities ACE Market Listing Requirements,” it said.

Apart from Ace Edible Oil Industries’ ongoing negotiation, Green Ocean said after making due enquire with its directors and major shareholders, it was not aware any development that could contributed to the UMA.

Earlier this month, the group managing director mckin lee byoung Jin said that the company would begin commercialisation of its non solidifying cooking oil Novelin in April.

Novelin is a palm-based cooking oil created using the technology by the Malaysian Palm Oil Board (MPOB). Its stabilising properties allow the oil to be used in winter, making it possible to export the product to Europe.

It was recently reported that Green Ocean was finalising a deal with two conglomerates for the exclusive supply of Novelin.

If the deal goes through by the fourth quarter of their 2012 financial year, the company targets to achieve Rm15mil to Rm20mil in profit in the next two years, in line with its expansion.

In addition, it is applying to receive a grant of Rm24mil from the Government’s Performance Management and Delivery Unit in March to build a new factory.