Singapore shares were flat to lower at midday on Monday, with casino operator Genting Singapore (GENS.SI) coming under pressure after rival casino operator Las Vegas Sands (LVS.N) posted poorer-than-expected results last week.
At the lunch break, the Straits Times Index (STI) < .FTSTI> was down 0.14%, or 4.36 points, at 3,206.82. The total value of shares traded in the morning session was $844.5 million, below the $1 billion that changed hands during last Wednesday’s half-day session.
At the lunch break, the Straits Times Index (STI) < .FTSTI> was down 0.14%, or 4.36 points, at 3,206.82. The total value of shares traded in the morning session was $844.5 million, below the $1 billion that changed hands during last Wednesday’s half-day session.
 
Singapore’s stock market was shut on Thursday and Friday for the Chinese New Year.
 
Genting Singapore accounted for nearly a quarter of trades, falling 2.8% to $2.07 on a volume of 97.1 million shares.
Las Vegas Sands, which owns the Marina Bay Sands casino in Singapore, reported revenues that were below analysts’ forecasts.
Las Vegas Sands, which owns the Marina Bay Sands casino in Singapore, reported revenues that were below analysts’ forecasts.
 
Its Singapore casino posted strong earnings before interest, tax, depreciation and amortization (EBITDA) of US$306 million ($390.1 million), boosted by above-normal table game winnings, but saw a 21% fall in rolling chip volume, or business from VIP tables compared with the preceding quarter.
 
“We believe we could see some ripple effect as the market could become worried about a possible volume decline at Resorts World Sentosa,” Citigroup said in a report.
 
The U.S. bank, which maintained its “buy” rating on Genting Singapore, Citigroup lowered both its revenue and EBITDA forecast for Genting Singapore by 7%, and cut its target price to $2.60 from $2.75.
 
“Many analysts have great expectations for Genting Singapore, which may not be easy to attain,” said Ng Kian Teck, an investment analyst at SIAS Research.
 
As for the overall market, Ng said there was uncertainty as investors were not sure whether to take their cues from bullish U.S. economic news or watch the ongoing political standoff in Egypt that may spread to other parts of the Middle East.
 
He did, however, expect some upside in afternoon trading, and targeted a range of 3,200 to 3,240 for the STI.
 
Shares of United Fiber (UFSL.SI), a forestry and pulp firm, fell as much as 9.1% after it said a judge has ruled in favour of China National Machinery and Equipment Import and Export Corp (CMEC), which has demanded a US$19.7 million payment.
 
At midday, United Fiber shares were trading at $0.05 on a volume of 7 million shares.