Holiday Magic Once More

It has been long painstaking months for share-holders when both Genting and Resorts World went ex-subdivision. Since the first week, there was tremendous selling pressure pushing Genting to the six ringgit mark and Resorts almost touching the three ringgit mark.

The non-stop conversion of its notes continued to weigh down Resorts World.

But then last week, there was some action on Resorts. Heavy volume trading lifted it to the RM3.60 level. It was brief before it went down to to the RM3.46 level. Then on Monday, 2nd July, Resorts sprung back and started moving upwards to RM3.66 again. This time it held on well. This morning it shot up 20 sen to RM3.86. If it should go beyond RM3.90, then it is back to its ex-subdivision price. It fell to RM3.76 for a 10 sen gain as the market closed.

Genting has also moved up on strength to touch RM8.75 by the close of trading. Another 50 sen, and it is back to its all time high ex-subdivision. If it can sustain the level, then Genting will start underpinning the local market like it always did from November 2006 onwards.

Now let us see what THE STAR has to say on the movement of Resorts World.Apparently, Resorts World is the main beneficiary of the Visit Malaysia Year 2007 campaign. The hotels are fully booked. I hope the impending haze will not hamper tourist arrivals to Genting Highlands. There is also market talk that Resorts will be dishing out good dividends soon to help its parent company to finance the integrated resort venture on Sentosa Island in Singapore. This is good news if it is true.

Be that as it may, the return of the twins is good for the market and should provide it the dynamic leadership to bolster trading.

Heartsong