Thursday

Why Genting SP (Counter code: G13) Drop?

  1. Earlier this month Singapore government proposed to amend the Casino Control Act to limit the number of entries by financially distressed residents, and also increase the maximum fine for breaking certain rules. This may be a negative impact to the stock price.
  2. Q1 2012 results has been below consensus and expectation for Q1 2012 is uncertain. Stock prices for Macau casinos has also fallen recently. There are worries that the slowdown in Chinese economy will affect the casino’s revenues.
  3. There has also been some downgrades by analyst from other firms due to the above.

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