Another day, another smash up of Macau’s blue chip casinos stocks!
The last time these stocks had been devastated (by a milder degree) was during the 3rd of December.
Today’s sell down has been stunningly horrific...
MGM China Holdings (HK:2282)
Galaxy Entertainment Group (HK:27)
Melco Crown Entertainment (HK: 6883)
Sands China Ltd. (HK: 1928)
Wynn Macau Ltd. (HK: 1128)
SJM Holdings Ltd. (HK:880) owner of Grand Lisboa
The Chinese government reportedly will “launch a major crackdown on the multibillion-dollar flow of illicit funds through Macau casinos” says the Business Insider. So it is likely that the reported plans to tighten money flows (against the political opposition) has exacerbated current woes.
Today's carnage only deepens their respective bear markets.
Meanwhile, Genting Malaysia (4715.KL) and Genting Singapore (G13.SI) closed up 2.78% and .97% respectively today. This reinforces the Chinese politics driven response on Macau's stocks.
But today’s bounce doesn’t neutralize the dominant downside actions for these non Macau Asian casino stocks.
The general weakness in Asia’s casino stocks have been symptomatic of the region’s economic conditions. Additionally, casino stocks may just function as the causa proxima or event risk that may trigger a contagion within the region.
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