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.
Genting Bhd's shares plummeted to the limit down on Monday, triggering Bursa Malaysia to suspend intraday short-selling (IDSS) for the remainder of the trading day. By 11:26 am, the stock had plummeted by 30 sen, or 15.97%, to RM1.58.
Bursa Malaysia confirmed the suspension, stating the last traded price of the Approved Securities had fallen more than 15% from the reference price. Short selling under IDSS would resume tomorrow at 8:30 am.
The decline occurred after Genting announced its intention to raise RM1.25 billion via a rights issue. The funds would be used to repay RM800 million of short-term borrowings and cover working capital needs. CIMB Securities Sdn Bhd noted that, given a one-for-four rights issue at RM1.30 per share, the theoretical ex-rights price would be RM1.75 based on the five-day volume-weighted average price to the previous Friday.
The firm holds a "hold" rating on Genting, maintaining the same target price for now, but anticipates a negative market reaction pending the finalization of the rights issue details.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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