KUALA LUMPUR (June 10): Casino and hotel operator Genting Bhd's share price slumped as much as 36 sen or 7% to RM4.84 on Friday (June 10) in Bursa Malaysia trade on profit-taking and after Genting chairman Tan Sri Lim Kok Thay sold over nine million of his indirectly held shares in the company in recent days.

On Friday, Genting's share price also closed down against broader market weakness due to factors including a sharp overnight drop in US shares ahead of the US inflation data announcement later.

At 5pm on Friday, Bursa's seventh-largest decliner Genting's share price pared losses when it closed at RM4.86 with some 33 million shares traded, after closing at RM5.20 on Thursday. At RM4.86, Genting has a market value of about RM18.71 billion, based on its 3.85 billion outstanding shares.

On Friday, Genting, which is also Bursa's 11th most-active stock, was traded between RM4.84 and RM5.05.

Across the broader market, the 30-stock FBM KLCI closed down 15.76 points or 1.04% at 1,493.95.

Genting is a KLCI constituent.

According to Genting's website, Genting Group comprises Genting Bhd and its listed companies — Genting Malaysia Bhd, Genting Plantations Bhd and Genting Singapore Ltd — as well as its principal unlisted subsidiaries Genting Energy Ltd and Resorts World Las Vegas LLC.

Besides casino and hotel operations, Genting Group's diversified businesses include oil palm plantation, property development, power generation, oil and gas besides life sciences and biotechnology operations.

Looking back, Genting had to contend with the global Covid-19-driven movement restrictions which disrupted operations in the world tourism industry following the outbreak which began in early 2020.

The situation is however different now as global vaccination progress leads to expectation of a revival in the global tourism industry.

Such sentiment has been reflected in Genting's share price which in recent days rose past RM5 to pre-pandemic levels.

On Friday, Genting's share price however fell below RM5 on profit-taking and after Genting chairman Lim sold over nine million of his indirectly held shares in the company in recent days.

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

On Wednesday (June 8), Genting said Inverway disposed of 2.69 million shares on Wednesday after selling 1.2 million, 2.36 million and 3.03 million shares on last Thursday, last Friday and Tuesday respectively.

Following the share disposals, Lim's indirect stake in Genting fell to 44.014% on Wednesday from 44.603% on Tuesday, according to Genting.

"Tan Sri Lim Kok Thay had a deemed interest in the Genting Bhd shares disposed of by Inverway by virtue of him being a beneficiary of a discretionary trust of which Parkview Management Sdn Bhd (PMSB) is the trustee. PMSB as trustee of the discretionary trust owns 100% of the voting shares of Kien Huat International Ltd which in turn owns 100% of the voting shares of Kien Huat Realty Sdn Bhd which owns 100% of the voting shares of Inverway.

"As such, PMSB as trustee of the discretionary trust was deemed interested in the Genting Bhd shares held by Inverway," Genting said.

Genting's share price has in recent days also taken cue from, among others, updates from its life sciences and biotechnology operations, which include Genting's 20.3%-owned associate TauRx Pharmaceuticals Ltd.

On June 1, 2022, Genting said in a Bursa filing that TauRx on May 31, 2022 unveiled initial data from the completion of the randomised portion of TauRx pivotal phase 3 clinical trial for the treatment of Alzheimer's.

"TauRx's lead investigative oral drug, HMTM, was tested in 598 people with Alzheimer's.

"TauRx informed that their data analysis is ongoing and will be reported at a later date. TauRx will be providing an update on their progress at the 35th Global Conference of Alzheimer's Disease (International) to be held on June 9, 2022. TauRx has also stated that they will pursue regulatory submission and coverage for HMTM," Genting said then.

Maybank Investment Bank Bhd (Maybank IB) analysts attended the conference.

In a note on Friday (June 10), Maybank IB analyst Yin Shao Yang said Maybank IB maintained its "buy" call for Genting shares with an unchanged target price of RM5.96.

"It (TauRx) shared more details of its phase 3 trial initial results for its lead drug, HMTM. There will be another year of research but the initial results are positive and commercialisation efforts are ongoing.

"The initial results that TauRx released are interim results. Final results are due in mid-2023.

"Under a 'blue sky' scenario, Genting shares could be worth as much as RM8.84 each," Yin said.