Upliftment of trading suspension on Gensoil and Gensoil OA shares

The Securities Commission (SC) would like to announce that it has directed the Kuala Lumpur Stock Exchange (KLSE) to uplift the suspension of trading in General Soil Engineering Holding Berhad (Gensoil) and Gensoil OA shares with effect from 13 May 2002. Trading of the two counters was suspended on 9 April 2002.

To curb excessive speculation and protect investors’ interest, the SC has also directed the KLSE to declare the two counters as “Designated Securities” until further notice. Details of the designation of the two counters are provided by the KLSE in a concurrent announcement.

The SC’s decision to uplift the trading suspension on both counters is based on the satisfactory disclosure by the company to the market and the KLSE.

However, the SC would like to caution investors to continue to be prudent and vigilant while investing in these counters. Investors should assess the fundamentals of the company, particularly based on the latest quarterly results announced by the company (on 26 February 2002), which are available on the KLSE LINK.

The SC is investigating the possible manipulation of Gensoil and Gensoil OA shares. It will also continue to monitor closely the trading of the two counters, as part of its ongoing market surveillance and enforcement work.

10 May 2002

Note to Editor:

1. On 9 April 2002, the SC had directed the Kuala Lumpur Stock Exchange (KLSE) to suspend the trading in Gensoil and Gensoil OA counters (pursuant to paragraph 16.02(f) of the KLSE Listing Requirements) after observing that there had been excessive speculation and possible manipulation activities in these counters. The SC’s action was aimed at protecting investors’ interests and the integrity of the securities market.
2. In addition to investor protection and preserving market integrity, the suspension was necessary to allow the company to make the appropriate disclosures for investors to make informed investment decisions. In this regard, Gensoil was 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.