Can someone explain to me why share prices of Genting tanked? - Seedly

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Asked by Vanessa Ann

Asked on 04 Apr 2019

Can someone explain to me why share prices of Genting tanked?

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Sandra Teo
Sandra Teo
Top Contributor

Top Contributor (Apr)

Level 6. Master
Updated on 07 Jun 2019

The selloff on Thursday was due to the announcement of casino entry levy and tax rate hikes. Investors were concern with the negatives quantifiable impact of the gaming tax on earnings. The plunge in share prices was also after Genting unveiled a S$4.5 billion expansion plan. This expansion plan that includes the construction of a fourth tower at MBS, a Minion Park and Super Nintendo World at Sentosa has long-term benefits however, in the short run Genting will take a hit in earnings growth and cash pile. The higher casino tax rate will take effect in 2022 and the hike in goods and services tax to 9% between 2021 and 2025.

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Qiu Weibin
Qiu Weibin

05 Apr 2019

$4.5billion for Sands to construct a forth tower makes sense...RWS use it on 2 theme parks? Amusement theme parks dun last and will be like Haw Par Villa soon....
Qiu Weibin
Qiu Weibin

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Level 1. Freshie
Answered on 05 Apr 2019

Its worth S$1 a share and if earns back at least S$0.20 annually and pays shareholders dividend S$0.05cents annuallay...

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