Affin Investment Bank lowered its call on Genting Malaysia
Bhd to "add" from "buy" due to the gaming group's
higher promotional expenses to lure punters to its hilltop
casino and the absence of overseas M&A opportunities.
The downgrade comes after Genting Malaysia posted lacklustre
fourth-quarter profits of 420.3 million ringgit, down 1.5
percent from a year ago.
Affin, however, kept its target price of 4.00 ringgit on the
stock, saying it offers strong domestic earnings base and
balance sheet as well as attractive valuations given that it is
the cheapest gaming stock in Southeast Asia.
Genting Malaysia shares dropped 1.35 percent to 3.66
ringgit, while the Malaysian benchmark stock index was
0928 (0128 GMT)
(Reporting by Niluksi Koswanage; Editing by Jijo Jacob)