Genting shares plunge nearly 16%, prompting Bursa Malaysia to halt short selling

On Monday, Genting Bhd's shares slid to RM1.58, a drop of roughly 15.97%, which activated Bursa Malaysia's circuit-breaker and resulted in the suspension of intraday short-selling for the remainder of the trading session. The price fall came after the company disclosed plans for a rights issue intended to raise RM1.25 billion, primarily to settle RM800 million of short-term borrowings and to fund working-capital needs.

Bursa Malaysia stated that short-selling under the IDSS scheme would resume the following day at 08:30 am. Analysts at CIMB Securities estimated a theoretical ex-rights price of RM1.75 based on recent volume-weighted averages and maintained a hold rating, awaiting final details of the offering. The market reaction is expected to stay negative until the rights issue is fully clarified.