Genting Malaysia rebounds as markets resume trading

Genting Malaysia rebounds as markets resume trading
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KUALA LUMPUR (Nov 7): Genting Malaysia Bhd shares rose as much as 16 sen or 4.43% to RM3.77 so far today on bargain hunting after the stock fell on Monday following news Malaysia's casino tax will be increased to 35% of gross income.

On Friday, Finance Minister Lim Guan Eng said during Malaysia's Budget 2019 tabling the country will also raise the annual casino licence fee from RM120 million to RM150 million.

On Monday, FBM KLCI-linked Genting Malaysia shares fell 93 sen to close at RM3.61. Today, the stock was traded at RM3.71 at 9:52am with some 39 million units transacted.

Malaysian markets resumed trading today following yesterday's Deepavali holiday.

Nomura wrote in a note on Genting Malaysia yesterday: "We make minor tweaks to our ASEAN model portfolio changes. In light of our rating downgrade on Genting Malaysia (GENM MK, Reduce) due to an increase in gaming taxes in Malaysia after its recent budget announcement, we are removing it from our ASEAN model portfolio."