Genting

Genting is currently sitting at its strong support at RM3.58. It is probably its 4-year lowest price. In the last 12 months, Genting fell 53%, dragged down by fears over its weak UK
operations and uncertain prospects for its upcoming Sentosa IR.

Genting’s share price has also taken a beating, falling another 10% following RWB’s controversial Walker Digital related-party transaction.

Although 2008 started off well for the local stock market, the rally was short-lived as a
series of domestic and global-led events dragged share prices down south for the rest
of the year. Even the domestic-driven gaming sector was not spared – share prices of
gaming-related stocks sagged by an average of 43% during 2008, falling more than
the 39% dive in the broader market, which was a big surprise.

Resilience was particularly evident during the year-end festivities and school holidays when the Genting Highlands Resort enjoyed not only full occupancy for all of its hotel rooms but also strong patronage of its theme parks and casinos. Even during the slower post year-end and pre-Chinese New Year period, patronage of its casino floors remained healthy, showing that off-peak operations are still strong.

If the global economic slowdown extends beyond 2010, this could be a blessing in disguise for the Genting Highlands Resort given that it is one of the cheapest holiday destinations within the
region.

For technical points of view, RSI and stochastic are in oversold region. There is still no obvious signal from MACD. But it is always better to buy when it is trading at its support line. Notice that, in the last 4 days, volume picked up a lot. It could be a sign that institution players are accumulating Genting's shares.

I expect to see Genting moving up within this 2 weeks.