Genting’s share price slips on back of double-digit profit plunge

The VIPs aren’t coming back anytime soon.

Jittery investors dropped shares in Genting Singapore after it reported a double-digit profit drop for both the fourth quarter and the full year 2014.

Data from CMC Markets showed that the stock has broken through its support of $1 this morning to a low of $0.975, a new four year low.

“The next level of support for the stock remains at $0.85, its low in 2010. Resistance for the stock on the upside is around the $1.18 level,” CMC Markets warned.

OCBC noted in a report that Genting foresees significant challenges for the Asian gaming and tourism industry, which continues to be impacted by the developments in China such as a slower economic growth and anti-graft drive.

“While GS expects bad debt provisions to remain relatively high in the near term, it believes that these will start to normalize due to its more prudent credit policy. And to make up for the likely weak VIP volumes, GS says it will continue to target the mass premium market, focusing on visitors in the surrounding region,” stated OCBC.