Company Name: GENTING SINGAPORE PLC
Research House: DBS Vickers
Shares of casino operators Genting Singapore <GENS.SI> and Genting Hong Kong <GENH.SI> rose on Friday after DBS Vickers said the Singapore gaming sector is poised for strong growth on the back of junkets and entry into new markets.
Genting Singapore shares rose as much as 2.5% and Genting HK gained as much as 3.6%.
At 10:36 a.m., Genting Singapore shares were up 2% at $2.08 on a volume of 79.1 million shares. Genting HK shares were trading at $0.435 with 10.5 million shares changing hands.
“DBS has a favourable report on the gaming market today, which shows that there is still room for growth,” said a local trader.
However, another trader expressed reservations about the ability of casino operators to sustain performance.
“I have some reservations because looking at the region there are a couple of mixed reports at the moment. The question is whether we are having a seasonal effect or continued growth into early next year,” he said.
DBS Vickers maintained its “buy” call on Genting Singapore with a target price of $2.70, adding that the company remains the market leader with 53% share of net revenue and 52% of EBITDA.
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