Malaysian Ringgit recovery bodes well for Genting Berhad share price

The recovery of the Malaysian ringgit could boost Genting Berhad; Ringgit to reach 4.15 per USD by end of 2024.
Original story by Asia Gaming Brief with insights from ACN

Analysts at Maybank say that data suggest that the recovery in the Malaysian Ringgit could be a boost for Genting Berhad’s share price, as its ‘high foreign shareholding’ places importance on the US-dollar-to-ringgit exchange rate.
Cited by The Star, the analysts note that foreign nationals tend to buy Genting shares when the ringgit appreciates, selling when the reverse happens.
The analysts are of the viewpoint that by the end of 2024, the ringgit would recover to 4.15 per US dollar, expecting less interest-rate increases by the US Fed after this year.
‘While we continue to like it fundamentally as a post-Covid-19 recovery play, more than a decade of historical data tells us that the recovering ringgit is a share price catalyst,’ note the analysts, as cited by the publication.
Maybank maintained its “buy” rating on Genting, however it slightly lowered its target price due to slower-than-expected recovery in both Genting Berhad and Genting Singapore.
The group has cut its earnings-per-share estimates by 24 percent for 2023, 8 percent for 2024 and 5 percent for 2025.
However, the group does expect earnings to recover to 2019 levels by 2025.
‘We opine that our investment thesis on Genting as a post-Covid-19 recovery play still holds,’note the analysts.
In our previous story, financial holdings company Nomura has lowered its forecasts for Genting due to an expected slowdown of China’s economy which will actually impact Chinese tourist visits.
In a succeeding story, Hong Leong Investment Bank (BLIB), however, was optimistic that tourism will also increase in China because of increased air travel and lessened regulatory scrutiny for the rest of the year.
To read the original story by Asia Gaming Brief, visit: https://agbrief.com/news/malaysia/25/07/2023/maybank-says-boost-in-malaysian-ringgit-bodes-well-for-genting-share-price/