Keck Seng extends fall on temporary closure of its hotels in US and Canada amid virus lockdowns

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KUALA LUMPUR (April 2): Keck Seng (Malaysia) Bhd fell as much as 3% or nine sen to RM3.41 in morning trades today, after the group announced the temporary closure of its hotel operations in the US and Canada following the enforcement of citywide lockdowns amid the Covid-19 outbreak. 

Keck Seng was among the top losers on Bursa Malaysia in early trade today. At 11.15am, Keck Seng fell eight sen or 2.29% at its all-time low of RM3.42, valuing it at a market capitalisation of RM1.26 billion. The counter saw some 15,000 shares transacted. 

In line with the equity market rout, Keck Seng's share price has fallen by 24% from RM4.50 on March 2. 

“In line with the directive, the operations of DoubleTree by Hilton Hotel Alana – Waikiki Beach (Hawaii), SpringHill Suites New York Midtown Manhattan (New York) and Delta Hotels by Marriott Toronto Airport and Conference Centre (Toronto) are temporarily suspended until further notice,” Keck Seng said in a filing with the local bourse yesterday.

Back home, Keck Seng said its Tanjong Puteri Golf Resort in Johor was also affected, but it will continue to serve guests who were staying at the resort prior to the imposition of the movement control order by the government.

The palm oil and property player said it is currently unknown when operations will resume and forecast that its hotels and resorts division may require financial support from the group following its reduced earnings.