KUALA LUMPUR (Oct 20): Hubline Bhd's share price continues to charge ahead amid news that the company is in the midst of negotiating a preliminary agreement with "a large oil and gas/chemical company" for the provision of logistics services.

However, it remains uncertain whether Hubline will clinch the contract and the value of the contract is not known.

As at 11am, Hubline's share price went up one sen to 17.5 sen — the highest level since February. Trading volume remains high this morning at 15.39 million shares; it is the 13th most actively traded stock at this hour.

The stock rebounded from a recent low of 5.5 sen on May 6 and has more than doubled since then.

In a bourse filing yesterday, the company said the terms and details of the memorandum of understanding (MoU) have not been finalised.

"As soon as the MoU is signed, the company will make immediate full disclosure in accordance with listing requirements," it told Bursa Malaysia, in response to the regulator's unusual market activity (UMA) query sent yesterday.

Another reason which it said could account for the UMA was the slew of boardroom changes in the company announced on Sept 18.

On Sept 18, Ibrahim Haji Baki was redesignated from non-executive director to become Hubline chairman, taking over from Datuk Richard Wee Liang Huat @ Richard Wee Liang Chiat, who was subsequently redesignated as executive vice chairman.

"Subsequent to them taking up their new roles, both the newly appointed chairman and vice chairman have increased their shareholdings in the company and announcements have been made accordingly," said Hubline.