Genting gains, seen as cheaper option

Genting gains, seen as cheaper option
Published: 2009/09/07


Shares in Genting, Asia’s largest casino operator by market share, were higher as the stock is seen as a cheaper option for exposure to its Singapore casino business than its unit Genting Singapore.

By 0704 GMT, Genting shares have gained 4.6 per cent to RM7.27 a share on volume of 7.8 million shares.

Genting Singapore was up 4.5 per cent at S$1.17.

“The upside in Genting lies in two key angles, 1) the explicit re-rating of Genting Singapore as a subsidiary and 2) the narrowing of the “discount to entry” as a parent (company),” said CLSA in a research note published today.

“The current share price is pricing in a value of S$0.63 per share for Genting Singapore and we thus advocate a buy call on Genting Bhd on the premise that investors are paying around 50 per cent “discount to entry”, said CLSA.

Malaysian gaming stocks are also playing catch-up with their regional peers, which rose sharply last week on reports gaming revenue in Macau, the world’s top gambling market, rose to a new high in August, said a dealer from a local brokerage. -- Reuters

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