Monday, February 7, 2011

Worries of possible volume decline in RWS weighs on Genting Bhd

KUALA LUMPUR: GENTING BHD []'s share price fell to a low of RM10.94 on Monday, Feb 7 on concerns of a possible volume decline at Resorts World Sentosa.

At 3.13pm, Genting was down 26 sen to RM11.02. There were 6.10 million shares transacted at prices ranging from RM10.94 to RM11.52.

The FBM KLCI rose 6.4 points to 1,538.22. Turnover was 2.2 billion shares valued at RM1.65 billion.

A foreign research house had reduced its earnings estimates for Genting for 2010-2012 by 1% to 8% on concerns of a possible volume decline at RWS.

Meanwhile, CIMB Research said it remains Overweight on the Malaysian gaming sector.

'Our sum-of-parts target price for our top pick, Genting Bhd, is nudged up from RM15.20 to RM15.50 following our target price upgrade for Genting Malaysia. We continue to view the stock as a cheaper indirect play on Singapore's potential as a regional gaming and tourism hub,' it said.


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