Why have Macao’s gaming stocks fallen?
MGM China is trading just a fraction above its 1 January level. The five other concessionaires’ share prices have dropped between 21 and 48 percent.
Macao gaming stocks have fallen to their lowest level since last December, despite all six concessionaires reporting relatively healthy financial performances, specialist publication Inside Asian Gaming (IAG) reports.
On 4 December, MGM China was the only concessionaire selling shares above its 1 January price – a rise of just one percent.
SJM Holdings was down by 48 percent, Melco by 38 percent, Wynn by 32 percent, Sands China by 22 percent and Galaxy by 21 percent, IAG said. The five gaming operators’ stocks have been trending downward since August.
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Gaming consultancy 2NT8 Ltd has linked the falling share prices to China’s troubled economy. “The culprit is most likely the fear of a slowdown in China, especially as it relates to non-essential spending such as luxury items, gaming and leisure,” its managing director, Alidad Tash, told IAG.
In contrast, the concessionaires – all listed in Hong Kong – have experienced better-than-predicted growth in revenue since Macao re-opened its borders in January.
By the end of November in Macao, accumulated gross gaming revenue stood at 164.4 billion patacas – significantly more than the government’s target of 130 billion patacas for the year.
