Bursa Securities queries Borneo Oil over surge in volume of shares

Gold bars and granules are pictured at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna. - Reuters filepic

KUALA LUMPUR: Borneo Oil Bhd, whose shares had seen a sharp rise in its trading volume, has prompted Bursa Malaysia Securities to query the company which is involved in gold mining, oil and gas and fast food.

The regulator had on Monday issued an unusual market activity (UMA) query on the sharp rise in the volume of the shares recently.

In its standard query over the UMA, Bursa Securities asked whether there was any corporate development relating to the company's business and affairs, that had not been announced, including those in the stage of negotiation or discussion.

It also queried the company whether there was any rumour or report concerning the business and affairs of the group that may account for the trading activity.

At 5pm, Borneo Oil and its warrants were unchanged at 18.5 sen  and 11 sen. However, the shares were actively traded 154.51 million shares done and 85.76 million warrants done.

StarBiz had in early June reported that Borneo Oil’s diversification into gold mining activities in Pahang has paid off, with its gold inventory currently worth some RM100mil. 

The surge in gold prices could have also caused heavy trading activity. Gold prices rose to around US$1,367 per troy ounce on Monday.

In the June 10 report, StarBiz reported that as at March 31, 2016, the group held 18,863 ounces in gold inventory valued at US$24mil or RM94mil (based on an ounce of US$1,280 and exchange rate of US$1 to RM3.9 then), according to the company.

The inventory rose to 19,692 ounces in April, it said in its latest monthly filing with Bursa Malaysia

Borneo Oil chairman Tan Kok Chor had then said the group had taken advantage of the surge in gold price to unload some of its gold inventories last year and reaped “handsome” profits.

In 2015, gold shot up to around US$1,285 per ounce from a low of US$1,050 per ounce.