KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaways:
Funds from operations-to-debt ratio forecast at 22%-24% through 2026, down from 23.5% in 2024.
Weaker-than-expected 1H performance dragged by Singapore and Las Vegas operations.
New York casino licence bid (US$5.5b Queens project) a key event risk, with outcome expected by Dec 1, 2025.
Sluggish Operations Pressure Rating Buffer
S&P Global Ratings flagged that Genting Bhd’s weaker-than-expected performance in the first half of 2025 is narrowing its credit buffer. The ratings agency projects the group’s funds from operations-to-debt ratio to stay within 22%-24% through 2026, compared with 23.5% in 2024.
Operational softness came mainly from Genting’s Singapore and Las Vegas properties, where both earnings and profitability lagged expectations.
Singapore and Las Vegas Headwinds
In Singapore, Genting’s operating profit was affected by:
Higher costs linked to ongoing brownfield construction, and
The temporary closure of the SEA Aquarium in May–June 2025 for redevelopment into the new Singapore Oceanarium.
In Las Vegas, lower visitor volumes weighed on both hotel and gaming revenue, reflecting weaker tourism demand amid macroeconomic uncertainty.
S&P expects a gradual pickup in earnings from 2026, contingent on recovery at these key assets.
New York Licence Bid – A Defining Catalyst
Genting has formally submitted a bid for a New York casino licence, tied to its planned US$5.5 billion resort development in Queens. The outcome is expected by December 1, 2025, and S&P calls it a critical event risk for the group.
If successful: Incremental earnings and investments from the licence would be key rating considerations. S&P expects Genting to maintain similar financial policy settings.
If unsuccessful: Genting’s competitiveness in the US market could weaken. However, it would also lift the overhang of significant capital commitments tied to new expansion.
“Our base-case assumptions do not reflect investments or incremental earnings related to the New York licence, as we view it as an event risk,” S&P stated.
Bottom Line
Genting’s sluggish operations have tightened its rating headroom, with near-term earnings recovery hinging on Singapore and Las Vegas. The New York licence bid is the next major swing factor: a win could transform its US footprint, while a loss could remove investment pressures but dampen competitiveness.
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