Macau gaming shares surge for second day

Home » Macau gaming shares surge for second day

Shares in Macau’s six gaming operators surged for a second day after the publication of amendments to the local gaming law, which removed a key element of uncertainty overhanging the market.


Among the Hong Kong-listed stocks, Sands China was the biggest gainer, closing up 14.6 per cent at $21, after having risen as much as 22 per cent in intra-day trading.

Wynn Macau ended the day up 11.9 per cent, while MGM China surged 11.7 per cent to $5.25. Galaxy Entertainment Group shares rose seven per cent, while SJM Resorts was the laggard with a gain of 4.8 per cent to $5.43.

In the US, Melco Resorts and Entertainment, which no longer has a Hong Kong listing, was up more than 16.6 per cent.

Uncertainty over the government’s planned amendments have been a key concern of investors. The stocks had their biggest one-day decline on record, wiping more than $18bn off their market value, when the law changes were first announced in mid-September.

More about:  Sweden and UK renew cooperation agreement

Fears of draconian new supervisory powers for the government coupled with proposed restrictions on capital distribution sent investors running for the exits.

On Friday, the government laid out its planned changes. There will be six concessionaires and no sub-concessions, with a licence period reduced to 10 years from 20 years. Most analysts have interpreted this as being highly likely that the six incumbents will all retain their licence in the upcoming re-tender.

A proposal for a government supervisor within the companies appears to have been dropped, with no mention of restrictions on capital distribution, only a requirement to notify the government.

Even ahead of the rule changes, a number of analysts who had been negative on the stocks said they have turned more positive. The more than 60 per cent drop in share prices over the past year now means that the upside reward outweighs the potential downside risks, they argued.

More about:  SIS signs deal to broadcast Saudi Cup

Source: Asia Gaming Brief

Leave a Reply

Your email address will not be published. Required fields are marked *

Gambling News from NewsCasinoNew.com is made for the most passionate fans of online casinos and internet gambling. We cover everything: from popular gambling world events and trends to new casino slot game releases and reviews, you will find the latest news stories.