Genting Malaysia active, recovers from selldown to climb 3.2%

KUALA LUMPUR: Genting Malaysia Bhd staged a recovery in early trade Wednesday, as the heavy selling pressure seemed to have abated.

The counter gained 3.32%, or 12 sen to RM3.73. It is currently the third most active counter with over 34 million shares done.

Genting Bhd rose 12 sen, or 1.78% to RM6.86 with 2.59 million shares traded.

On Monday, Genting Malaysia saw its share price tumbled in a knee-jerk reaction to the new casino tax under Budget 2019.

Finance Minister Lim Guan Eng said during Malaysia's Budget 2019 tabling on Friday the country will raise the annual casino licence fee from RM120mil to RM150mil.

Under Budget 2019, the government increased in casino and slot machine operator duties to 35% and 30% of gross takings, starting Jan 1, 2019.

“We estimate the hike in casino and slot machine operator gaming duties could cut Genting Malaysia’s FY19/20F EPS by 24.9%-29.8% and Genting’s FY19/20F EPS by a lower 13.7%-15.7%, as Genting is a more diversified entity,” CIMB Equities Research said.