Short selling of Genting Malaysia suspended after plunging 27%

• Nov 06, 2018

KUALA LUMPUR: Bursa Malaysia Securities suspended all short-selling activities of Genting Malaysia (GentingM) early Monday after its share price tumbled in a knee-jerk reaction to the new casino tax under Budget 2019.

The shares plunged 27% in early trade, falling RM1.22 to RM3.32.

The regulator said as the last done price of the approved securities dropped more than 15 sen / 15% from the reference price the short-selling activities had been suspended.

At 10.15am, GentingM was down RM1.10 to RM3.44 with 211 million shares done. Genting lost 47 sen to RM6.73.

The FBM KLCI was down 7.88 points or 0.46% to 1,705.99. Turnover was 850.03 million shares valued at RM1.12bil. There were 191 gainers, 452 losers and 195 counters unchanged.

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.

Source: https://www.thestar.com.my/business/business-news/2018/11/05/short-selling-of-genting-malaysia-suspended/#GoieGo073sIi6tVQ.99