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Casino stocks continue to fall


Downtrend: Genting tumbled 9 in a week while Genting Malaysia has declined 21.15 since Budget 2019 was announced.

Downtrend: Genting tumbled 9 in a week while Genting Malaysia has declined 21.15 since Budget 2019 was announced.

But some analysts are maintaining their ‘buy’ calls on Genting and Genting Malaysia

A notable number of analysts have continued to maintain their “buy” calls on Genting Bhd and Genting Malaysia Bhd (GenM) despite the unexpected announcement of additional taxes that will be imposed on casinos in Malaysia.

After the announcement of the additional levies and taxes, both companies had seen a sustained selldown in their respective shares when trading resumed last Monday due to their exposure, via the casino ownership, to Genting Highlands.

Genting, which has a majority 49.3% stake in GenM, will also be impacted but to a lesser extent because its financials are also backed up by ownership of other companies such as Genting Singapore (GenS), Genting Plantation (GenP) and Landmarks Bhd .

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