SC directed suspension of General Soil Engineering Holdings Berhad (Gensoil) and Gensoil OA shares to curb excessive speculation and possible market manipulation
The Securities Commission (SC) directed the Kuala Lumpur Stock Exchange (KLSE) to suspend the trading in Gensoil and Gensoil OA counters yesterday after observing that there had been excessive speculation and possible manipulation activities in these counters.
The SC’s action was made pursuant to paragraph 16.02(f) of the KLSE Listing Requirements and was aimed at protecting investors’ interests and the integrity of the securities market.
The SC observed that the excessive speculation in the affected counters could not be supported by fundamental justifications. Hence, in addition to investor protection and preserving market integrity, the suspension is necessary to allow the company to make the appropriate disclosures for investors to make informed investment decisions. In this regard, Gensoil has been asked to disclose all relevant information pertaining to the affairs of the company, as required to be announced under the KLSE Listing Requirements, including the status of the corporate proposals which were previously announced.
The upliftment of the suspension will only be considered upon the company making satisfactory disclosures.
10 April 2002