Genting shares hit limit down, prompt IDSS suspension

KUALA LUMPUR: Genting Bhd's shares hit the limit down on Monday, prompting Bursa Malaysia to suspend the intraday short-selling (IDSS) of the stock for the rest of the day today.

As of 11.26 am, the counter fell by 30 sen or 15.97 per cent to RM1.58.

In a filing, Bursa Malaysia said the counter has been suspended for the rest of the day as the last traded price of the Approved Securities dropped more than 15 per cent or 15 sen from the reference price.

"The short selling under IDSS will only be activated tomorrow at 08:30 am," it said.

Genting's share price fell after it announced its plan to raise RM1.25 billion through a rights issue to repay RM800 million of its short-term borrowings, with the balance mainly used for working capital purposes.

In a note, CIMB Securities Sdn Bhd said that, assuming a one-for-four rights issue priced at RM1.30 per share, the theoretical ex-rights price is RM1.75 based on the five-day volume-weighted average price to last Friday.

"We maintain a 'hold' call on Genting with an unchanged target price for now, pending the finalisation of the rights issue details. However, we anticipate a negative reaction from investors," it added.