Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 5): Malaysian stocks closed slightly lower today, dragged down by gaming stocks amid lingering worries over the impact of a hike in casino duties – the first in the last 20 years.

The negative performance was also in tandem with regional peers as optimism over a potential US-China trade deal receded.

Investors booked profits as caution set in ahead of Diwali, with the FBM KLCI settling 5.07 points or 0.3% lower at 1,708.80 points.

Shares of Genting Malaysia Bhd (GENM) plunged 20.48% or 93 sen in one day to close at RM3.61 as investors reacted to last Friday's Budget 2019 announcement that casino duties will be raised to 35% from 25% and an increase in the flat rate casino licence fee to RM150 million from RM120 million per year. A total of 379.04 million shares changed hands, making GENM the most active stock on Bursa Malaysia today. Its market capitalisation fell to RM20.41 billion from RM25.67 billion last Friday.

Shares of its parent Genting Bhd also dropped 46 sen or 6.39% to close at RM6.74, with 36.45 million shares done. Its market value was at RM25.8 billion.

Malaysia Airports Holdings Bhd (MAHB) also took a big hit, as an airport real estate investment trust (REIT) proposed by the government in Budget 2019  is expected to put a squeeze in the airport operator's margins in the medium to long term. The stock fell 64 sen or 7.76% to settle at RM7.61 today, with 7.45 million shares traded, valuing the stock at RM12.63 billion.

According to Rakuten Trade Sdn Bhd vice-president Vincent Lau, the downtrend and lower sentiment in the region is due to the US mid-term election.

Reuters reported that Asian stocks skidded on Monday as fears of faster rate hikes in the US and uncertainty around the Sino-US trade war deterred investment in riskier assets, while sterling briefly jumped to a two-week high on hopes of an orderly Brexit.

Markets are expected to be skittish ahead of US congressional midterm elections on Tuesday.

Lau told theedgemarkets.com that the KLCI was also dragged down by GENM, Genting and MAHB.

“Apart from these few negatives, the overall Budget 2019 measures was actually okay,” he noted.

JF Apex Securities Bhd said trading volume fell to 2.23 billion shares worth RM3.29 billion compared with Friday’s 3.16 billion shares worth RM2.53 billion.  Market breadth was negative with 344 gainers and 537 losers, while 315 counters remained unchanged.

Across in Asia, Japan's Nikkei 225 dropped 1.55%, South Korea's Kospi fell 0.91% while Hong Kong’s Hang Seng was down 2.08%.
 

      Print
      Text Size
      Share