Macau casino shares soar amid early recovery
Posted by Sarah Banks on 16 Sep 2009 at 14:09
Shares of casino companies based in Macau rose last week when results showed gambling revenue in the Chinese enclave soared to a new high in August.
The figures seem to suggest recovery is progressing well in the world's largest gambling market.
Reuters reported shares in Galaxy Entertainment Group went up by as much as 6.4 per cent, while Melco International Development, owned by Lawrence Ho, went up by as much as 7.1 per cent.
Overall casino revenue reportedly went up by 17.2 per cent in August compared to a year earlier.
Gaming revenues are also expected to register a higher year-on-year growth rate in September due to a drop registered a year ago.
According to Reuters, Credit Suisse analyst Gabriel Chan said: "With excitement about the upcoming IPOs as well as positive macro news flow, including the relaxation of visa restrictions and implementation of a junket commission cap, we believe there is still money to be made in the near term,"
The American companies Las Vegas Sands and Wynn Resorts have both filed for a listing on the Hong Kong stock exchange.
Their move comes as many analysts predict Las Vegas will have a longer recovery period than Macau.
Other share moves saw SJM Holdings, the flagship company of Stanley Ho, gain 4.6 per cent, while even the company which runs ferries from Hong Kong to Macau, Shun Tak Holdings, saw its shares climb 8.2 per cent.
SJM can now boast a market share of 27 per cent in August, compared to 23 per cent a month before.
The market share of Wynn, on the other hand, dropped by two percentage points to 13 per cent in August, while its rival MGM has 11 per cent and Galaxy stands on 10 per cent.
