KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Genting Malaysia Bhd (GENM) saw its share price fall for a second day, as growing concerns over a potential credit ratings downgrade overshadow optimism surrounding its front-runner status for a downstate New York casino licence.
CreditSights, a Fitch Solutions unit, warned that both Genting Bhd and subsidiary Genting Malaysia face elevated downgrade risks due to high leverage and weak cash flow.
Genting’s latest pro-forma results showed it breached downgrade triggers for cash flow, leverage and EBITDA at both Moody’s and Fitch.
Genting Bhd’s takeover bid has lifted its stake in Genting Malaysia to 73.133%.
GENM’s share price dropped as much as 3.1% to RM2.18 at market open before recovering slightly to RM2.19, valuing the company at RM12.4 billion.
Analysts Boost Earnings Forecasts on New York Optimism
Both TA Research and Hong Leong Investment Bank (HLIB) raised their earnings projections for 2026–2027, citing stronger contributions from Resorts World New York City (RWNYC).
HLIB Research
FY2026 core earnings forecast: RM620.3m (+21.3%)
FY2027 core earnings: RM735.2m (+23.7%)
Rating: Hold
TP: RM2.35
TA Research
FY2026 net profit: RM986.2m (+10.7%)
FY2027: RM1.08b (+15.6%)
Rating: Buy
TP: RM3.06
TA highlighted RWNYC’s high-density Queens location, strong tourism flows, and early table-game advantage as key earnings drivers, helping diversify away from Malaysia.
Regulatory Uncertainty Remains
CIMB Securities warned that major licensing details remain unclear:
Licence duration
Gaming capacity approval
Tax rates
Regulators also recommended cutting Genting’s proposed 6,000 slots and 800 tables to 4,635 slots and 534 tables.
CIMB kept its “hold” rating with a TP of RM2.55.
Still, RWNYC could begin live table games by mid-2026, potentially capturing the entire table-games GGR pool from 2026–2030. CIMB expects:
250 tables in 2026
800 tables by 2029
Genting New York LLC has proposed a US$5.5 billion upgrade featuring a massive 500,000 sq ft casino floor, 6,000 slots, 800 tables, 2,000 hotel rooms, a 7,000-seat arena, and 7,000+ parking bays.
The New York gaming board has advanced Genting to the final licensing review stage, with licences expected by Dec 31, 2025.
Key Takeaways
GENM shares continue to slip as downgrade fears overshadow U.S. expansion potential.
CreditSights warns Genting breached Moody’s & Fitch downgrade triggers for leverage and EBITDA.
Analysts remain positive on RWNYC, raising FY2026–27 earnings forecasts.
Major licensing terms for New York remain unfinalised, creating uncertainty.
RWNYC could secure first-mover advantage and capture full table-games GGR from 2026 onward.
A US$5.5b mega expansion plan positions Genting strongly — pending regulatory approvals.
Comments
Post a Comment