OSK sees more upside for Genting Malaysia

Friday, 03 February 2012 10:13

PETALING JAYA: Genting Malaysia Bhd’s shares are expected to continue their upward trend.

An OSK Reseach analyst said in a report: “We are still eyeing the RM4.26 and RM4.60 levels as the upside targets.”

For the past two months, the stock had been trading in the RM2.96 to RM3.93 range.

It finally surpassed the RM4 mark on Tuesday when the share closed at RM4.04.

Yesterday the stock closed at RM4.10, 5.67% up from its closing on Monday, with 18.65 million shares changing hands.

“The time required for reaching either the RM4.26 level or the RM4.60 level may be a few months ahead, judging from the movement of the stock which has been slowly trending higher along the uptrend channel,” OSK Research said in a report.

It was reported that on Jan 5, 2012, the company announced to Bursa Malaysia that it had entered into a non-binding letter of intent with the New York State Urban Development Corp.

This was done through its wholly-owned subsidiary Genting New York LLC for the consideration of developing an integrated complex in New York.

The project will cost an estimated US$4bil (RM12.1mil).

It will include 3.8 million sq ft of convention and exhibition centre with up to 3,000 hotel rooms and an expansion of Resorts World Casino New York City.

It was also reported that Genting Malaysia has been lobbying for a casino license in Miami, Florida to build a casino and hotel complex.

The cost of the project is estimated at US$3.8bil (RM11.5bil).

However, once the bill has been passed, Genting Malaysia could still face stiff competition from other gaming players there.

The prospect of being awarded casino licences in both New York and Miami would provide a “more pronounced overseas contribution to the overall group profit in the future,” Affin Investment Bank Research analysts said.

However, as of to date, there is no news on the status of the licences.

From The Star