SHARES of Landmarks Bhd jumped yesterday after the property firm inked an agreement that allows it to embark on licensed activities such as gaming at Indonesia's Bintan island.

The shares rose 22 sen or 7.4 per cent to RM3.18 at almost double the previous day's trading volume.

Early yesterday, research house ECM Libra reiterated its "buy" call on Landmarks and raised its target price to RM5.12 from RM3.68 before.

It became more bullish on the firm after the subsidiary - Bintan Treasure Bay Pte Ltd - announced an alliance with an Indonesian company, allowing the former to undertake certain activities at its Bintan Treasure Bay project.

These activities are medical tourism, multimedia and information technology hosting, as well as games and entertainment, including gaming.

Landmarks will pay the company, PT Wisata Hiburia, 10 per cent of its net profit from the integrated resorts project.

"While details are sketchy at the moment, we are very upbeat on the prospect of the proposed development of international class integrated resorts within such close proximity to Singapore," ECM said in a report yesterday.

Another research house, Aseambankers, also felt that the development is positive to Landmarks and its major shareholder, Genting Bhd, as this puts them a step closer towards realising plans to set up a casino in the proposed integrated resort in Bintan's Lagoi Bay.

However, the research house remains concerned as to how this development will fit into the framework of Indonesia's national anti-gambling laws.

It is also uncertain as to how Indonesia's predominantly Muslim population will react to the setting up of the country's first legal casino.

"We believe there could still be a few other approvals required before this integrated resort project takes off.

"Nevertheless, should Landmarks get all the necessary approvals to build the casino, this will significantly boost the profitability of the proposed Lagoi project," Aseambankers said in a note to clients yesterday.

It is understood that such as casino will cater only to foreign tourists and non-Muslims, it added. In 2007, Bintan attracted around 330,000 visitors last year, mainly from Singapore, South Korea and Japan.

Aseambankers maintained its "hold" recommendation on Genting, with an unchanged target price of RM7.50.

Genting, which owns about 30 per cent of Landmarks, rose 25 sen to close at that target price yesterday.