KUALA LUMPUR, Nov 5 — Genting Bhd’s share price fell 45 sen in early trade today to RM6.75, while Genting Malaysia Bhd’s (GENM) shares eased 99 sen to RM3.55, as the gaming sector is seen as one of the two most affected by the 2019 Budget.
At 10.24am, 17.08 million Genting shares were traded and as for GENM, 221.34 million shares changed hands.
Kenanga Investment Bank Bhd said despite the hike in taxes and license fees announcement, the research house still see value in the sector.
“It’s the first increase since 2005 and was not unexpected, as the Pakatan Harapan government is looking for new sources of tax revenue following the removal of Goods and Services Tax in June, and a sin tax was one of the easiest targets,” it added in a note today.
Kenanga cut the financial year 2019 estimate for Genting’s target price to RM8.20, and RM4.75 for GENM.
“Overall, the hike in the casino tax and license fee is negative for the casino operator, but apart from Genting stocks, we maintain our offer price calls for other gaming shares,” it added. — Bernama
