Genting is the top gainer TODAY! Gained up to RM38.50 from RM36.25 by 3.30 pm. It was traded between a low of RM36.25 and high of RM38.75 with a total of 1.01 million shares. Genting covered warrants was also 11sen higher to RM1.32 while Resorts up 30 sen to RM17.70.

However, the shares dropped by the end of the day as expected. The speculators must have earned a lot from today's speculation.

Genting group gained a foothold in the casino business in Macau via a tie-up with Ho, who in turn will take up a stake in its associated company Star Cruises Ltd.

What They Say?

OSK Research has revised its target price upwards for Resorts to RM21 from RM17.60 and Genting from neutral to buy with a target price of RM43.10 from RM32.50

What's the Deal?

Star Cruises and Genting International would buy a controlling stake in the yet-to-built casino in Macau. The deal would give octogenarian Ho a stake in Singapore’s casino resort while offering Genting group access to the lucrative China gambling market.

What's Next?
On 15-Jan-2007, Genting Berhad and its subsidiary Resorts World Berhad have proposed a share split of their 50 sen shares into five 10 sen shares each. They mentioned that the share split would not have a direct impact on the companies’ market capitalization but would accordingly reduce their market price to one-fifth of that before the share split.

In matured foreign stock exchange, a share-split normally shows a particular stock is doing well and normally the stock price will be on uptrend towards the date of share-splits take effect. Both stocks do show the same uptrend pattern.