Quick take: Genting Malaysia slides on temporary closure


KUALA LUMPUR: Shares in Genting Malaysia Bhd fell marginally as it will shut down its resort operations again.

The gaming and leisure group fell 0.83%, or two sen to RM2.38 with over 1.41 million shares traded. GenM-C84 fell one sen to 12 sen, GenM-C28 declined 0.5 sen to 5.5 sen while GenM-C89 lost 0.5 sen to six sen.

“News that Genting will shut down its resort operations again may see some share price weakness and we are buyers if Genting Malaysia dips below the RM2.20 level,” Rakuten Trade said.

In a notice on its website, Genting Malaysia said Resort World Genting will be temporarily closed in line with the government’s announcement to implement the movement control order (MCO) in Pahang from Jan 22 to Feb 4, 2021.

It said essential resort-based services such as security, bomba, utilities and clinics will remain operational.

Kenanga Research MCO 2.0 in six states locally and the second lockdown in the UK, which led to its fourth casino to be permanently shuttered there, will continue to pressure Genting Malaysia’s near-term earnings.

It was reported last week that Genting Malaysia’ UK unit is proposing to permanently close its Genting Casino in Southport due to Covid-19.

“However, at least there is a positive sign from New York and Bahamas on encouraging data post reopening.

“Nonetheless, it remains a ‘market perform’ at a lower target price of RM2.45,” it said, adding that its parent company Genting was a better proxy for recovery play.

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