Wednesday, September 28, 2022

Macau casino stocks plunge on Neptune warning, visitor concern


Casino stocks traded in Hong Kong plunged to multi-year lows on Tuesday, with losses spilling over into U.S. trading, after junket operator Neptune Group warned it may be forced to exit the business, while concern over Golden Week tourism numbers added to the gloom.

SJM Holdings fell almost 7 percent to a five-year low, Wynn Macau lost 5.7 percent, MGM China was down almost 9 percent and Sands China lost more than 9 percent to the lowest in three-years.

In U.S. trading Melco Crown Entertainment was down 6 percent at three-year lows, while Wynn Resorts, MGM Resorts and Las Vegas Sands’ U.S.-traded shares continued their decline.

The latest selloff was triggered by comments from junket operator, Neptune Group, which warned that it may leave the business after reporting hefty losses, triggering more concern about the VIP market and shortage of liquidity.

Those concerns were compounded by local media reports attributed to Macau tourism officials that Chinese visitors may be prompted to travel further afield this year as the key Golden Week holiday is longer than usual.

The October national holiday is one of the most important weeks of the year for Macau casino revenue after the Chinese New Year festivities. 

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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