KUALA LUMPUR: Genting Bhd shares fell in late morning on May 28 but Genting Singapore plc was unchanged after private companies controlled by Tan Sri Lim Kok Thay’s family disposed of a 9.5% stake in Genting Singapore the previous day.

At 11.15am, Genting fell 10 sen to RM5.35 but Resorts rose one sen to RM2.69. Across the causeway, Genting Singapore was unchanged at 71 cents, after trading between 69 cents and 72 cents.

On May 27, Kien Huat Realty Sdn Berhad had disposed of 265.809 million shares while Golden Hope Unit Trust placed out 649.07 million shares at 72 cents apiece. Both companies are controlled by Lim’s family.

RHB Research Institute said on May 28On the financial front, there was no impact to Genting (being Genting Singapore’s largest shareholder, with 54.5% stake), as this was just a change of shareholding from the family to another party/parties.

“However, this could be deemed to be negative for Genting Singapore, and indirectly to Genting, as investors could view it as the family cashing in after the recent run in Genting Singapore’s share price.

“Genting Singapore’s share price has run up by more than 100% since the low in March 2009 to the previous close of 86.5 cents,” it added.

RHB Research said there was no change to its forecasts. The risks included a more protracted global and regional economic recession, which could affect domestic sentiment and visitor arrivals; and intensifying competition from regional players.

“We believe any share price weakness as a result of this placement would provide a good opportunity for investors to buy into Genting,” it said.

RHB Research updated its sum-of-parts based fair value to RM6.20 (from RM5.90), after updating the discounted cashflow-based value for the management fee received from Resorts after updating for RHBRI’s latest DCF parameters.

The research house also updated for the latest target price of Resorts of RM3.05 (from RM2.65) while its updated the latest target price for Asiatic of RM5.85 (from RM5.30); and the latest market price of Landmarks.