Casino stocks plunge as Covid infections rise
Casino shares have been trading lower since Monday following new cases detected in the neighboring region. The downturn follows the National Day Golden Week in which the SAR recorded a much-needed bump in tourist arrivals.
As of yesterday’s trading, MGM China closed with a 5.34% plunge, followed by Wynn Macau and Sands China with drops of 4.45% and 4.47% respectively.
Galaxy (-3.34%), Melco (-2.86%) and SJM Holdings (-2.88%) also fell by the close of trading.
On Monday, shares of the US-listed Macau casino stocks in New York were markedly lower, with Wynn leading the decline, falling 11%. Las Vegas Sands fell 7.2%, while Melco Resorts & Entertainment was down 6.1%, and MGM Resorts International fell 3.7%.
About 422 million domestic trips were made in China during this year’s National Day holiday, according to the country’s Ministry of Culture and Tourism.
Domestic tourism revenue generated during the weeklong holiday totaled RMB287.2 billion, statistics from the ministry showed.
The city, meanwhile, recorded some 182,284 visitor arrivals during the seven-day long holiday, a much-needed tourism revival as the city has been suffering from low visitor numbers since the outbreak in mid-June that led to strict border restrictions.
The gaming sector also recorded a surge in revenue, seeing daily average revenues double compared to the first nine days of September.
A note issued by JP Morgan Securities (Asia Pacific) Ltd stated that aggregate casino gross gaming revenue (GGR) for the first nine days of the month was MOP1.7 billion; approximately MOP190 million a day.
However, this figure was only about 15% to 20% of pre-Covid levels for Golden Week, when daily GGR reached the MOP1 billion mark.
Both the tourism and the gaming sector are now anticipating the resumption of group package tours and e-visas for mainland travelers.
Yet, Zhuhai is now facing new cases following the Golden Week and with a zero-Covid policy, district lockdowns continue to overshadow Zhuhai.
The SAR government has also imposed border restrictions for cross-border travelers.
China recorded 2,000 Covid cases on Monday, the highest level in a month.
