Genting drops on possible gaming tax hike
Shares in Malaysia’s gaming-to-plantations conglomerate Genting Bhd declined as much as 3.06 per cent on the possibility of a hike in gaming taxes when the country’s budget for the next year is unveiled on October 25.
Shares in the group’s gaming unit, Genting Malaysia Bhd, fell as much as 6.19 per cent. The two counters were the worst performers among the 30 stocks in the benchmark key index.
Shares in Genting were trading 2.66 per cent lower at 3pm in Kuala Lumpur, while Genting Malaysia shares were down 4.82 per cent. The benchmark key index was 0.22 per cent lower.
The impact of a potential casino tax hike in Malaysia on Genting’s earnings would likely be muted given its relatively more diversified earnings, RHB Research said in a note dated September 17.
The research house reiterated its 'neutral' recommendation on Malaysia’s gaming sector, with potential earnings downgrades on all three gaming stocks under its coverage, should the widely-speculated gaming tax hike materialise.
The three counters under its coverage are Genting, Genting Malaysia and number forecast operator Magnum Bhd.-- Reuters