Genting shares rise on solid earnings; Singapore shares edge up
SINGAPORE May 6 (Reuters) - Genting Singapore PLC shares outperformed a nearly flat Singapore market on Tuesday, hitting their highest level in almost two weeks, after posting first-quarter earnings above market estimates.
The benchmark Straits Times Index was up 0.18 percent at 3,247.54, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent.
Shares of Genting Singapore jumped 3.4 percent to an intra-day high of S$1.36, its highest since April 25, after the casino operator said on Monday its core earnings for the quarter ended March 31 soared 60 percent on the year as gaming income recorded robust gains.
CIMB maintained its "add" rating on the stock and target price of S$1.81, citing growth in VIP revenue and market share gain as potential catalysts for further growth. It also cited a planned new casino in South Korea.
"When it opens in the first quarter of 2017, it will be well positioned to tap into the North China market which we estimate will be the same size as ASEAN's $10 billion gross gaming revenue," CIMB said.
Gains in Genting were offset by losses in Singapore Press Holdings Ltd and Golden Agri-Resources Ltd, which led declines on the index. Shares of both stocks were down 1.6 percent. (Reporting by Andrew Toh; Editing by Gopakumar Warrier)