Shares of casino operator Genting Malaysia Bhd fell by the biggest margin in a single trading day on Monday after the Malaysian government said it would raise annual fees and tariffs on gross imports.

In Bursa Malaysia’s trading session, shares of Genting Malaysia were down by up to 30% compared to the previous trading day’s close, Bloomberg said, representing the biggest drop since the company’s stock went public in 1989.

Shares of Genting Malaysia’s parent company, Genting Bhd, fell 12% at one point on Monday, according to the report. Genting Malaysia shares closed down 20.48% yesterday at MYR3.61 (US$0,865). Bursa Malaysia closed today Tuesday.

Malaysian Finance Minister Im Kwan-eng announced in a budget speech on Friday that the annual fee for casino licenses would be raised from 120 million yuan to 150 million yuan ($36 million), while tariffs on total revenue from games would be raised from 25% to 35%.

Stockbrokers warned that the increases would weigh on the price of Genting Malaysian shares. A note from Japanese broker Nomura said the market had considered raising taxes by just 5 percentage points, although higher gaming taxes were perceived as a threat to stock prices.

The market has previously pushed Genting Malaysia shares down about 9% since early October in response to speculation about higher government gaming taxes.

Nomura, like other securities firms, lowered its rating on Genting Malaysia shares to Buy from Buy and lowered its price target to MYR4.20 per share from MYR6.50.

Genting Malaysia operates Resorts World Genting in Malaysia and operates casinos in the United States, the Bahamas, and the United Kingdom.

Genting Malaysia reported second-quarter earnings in late August, during which time its quarterly profit rose 104% year-over-year, despite Nomura reporting a 21% year-over-year drop in VIP gambling volumes.

BY: 에볼루션 바카라사이트

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