Oceanus Group shares rise, then fall following SGX query on unusual trading activity

Singapore

SEAFOOD supplier Oceanus Group has said that it is not aware of any information concerning the company that might explain the unusual trading activity in its counter on Thursday.

Its shares surged 8.2 per cent to 5.3 Singapore cents just 36 minutes after the market opened, more than double the 2.6 cents last month.

By mid-afternoon, it had become the top traded share by volume, prompting queries from the Singapore Exchange.

At the close of trading, Oceanus shares fell to 4.7 Singapore cents, which is 0.2 Singapore cent or 4.1 per cent lower than the previous day.

Even so, more than 583.5 million shares worth S$29.36 million had changed hands, cementing its spot as the top traded share on Thursday.

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Asked if the company is aware of any other possible explanation for the trading, Oceanus said: "The company is aware that a stockbroking firm commenced coverage on the company on Jan 20, 2021 through an internal non-rated report, which is available to clients of that stockbroking firm."

This could refer to a report on Wednesday by UOB Kay Hian (UOBKH), which highlighted the "strong turnaround" that Oceanus had undergone since chief executive Peter Koh took over in December 2014.

"From the brink of bankruptcy, Oceanus has successfully cleaned up its business since 2017, and grown its revenue manifold from 2018-20," UOBKH analysts wrote.

The report added its recent setting up of Season Global, the company's distribution business, would enable Oceanus to "penetrate China and deliver exponential growth", while its expansion into high-tech farming would help it build regional presence.

In its response to SGX, Oceanus also confirmed it is in compliance with mainboard listing rules.