KUALA LUMPUR (June 9): Genting Bhd chairman Tan Sri Lim Kok Thay had in recent days sold over nine million of his indirectly held shares in the casino and hotel operator as the stock’s price rose past RM5 to pre-Covid-19 pandemic levels as vaccination progress leads to expectation of a revival in the global tourism sector which was badly hit by the pandemic that began gripping world attention around March 2020.

According to Genting’s latest Bursa Malaysia filings, Lim had via Inverway Sdn Bhd sold 9.28 million Genting shares in four tranches comprising one each on Thursday (June 2), Friday (June 3), Tuesday (June 7) and Wednesday (June 8).

Recent strength in Genting’s share price also came after its 20.3%-owned TauRx Pharmaceuticals Ltd announced that it is moving ahead with regulatory submission on its Alzheimer’s treatment development.

“Any positive finding is likely to create another up-leg in Genting share price due to potential value unlocking in TauRx,” said Hong Leong Investment Bank’s analyst Sam Jun Kit in a note on Thursday.

The analyst said Genting’s gaming business is set to recover and potentially turn around in subsequent quarters, premised on higher operating capacity, contributions from a new theme park and weaker ringgit, which augurs well for both local tourism and foreign visitations. 

RHB Research analysts Jim Lim Khai Xhiang and Lee Meng Horng also said the recovery of the group’s casinos is still on track and they should see better future earnings, given the reopening of borders and resumption of tourism activities. 

“While casino operators’ earnings generally underperformed estimates due to a slower-than-expected rebound, their recovery continues to progress forward, as countries transition towards living with Covid-19,” they said in a note on Thursday. 

Genting was trading six sen or 1.1% lower at RM5.28 at 11:30am, giving it a market capitalisation of RM20.47 billion.