Understanding the Market | Gaming stocks generally decline, Melco International Development falls over 3%, Citigroup lowers October gaming revenue forecast
Gaming stocks generally declined. As of the time of writing, Melco International Development fell 3.21% to HKD 4.53; Paradise Entertainment fell 2.56% to HKD 0.76; Sands China fell 1.65% to HKD 17.93; Wynn Macau fell 1.56% to HKD 6.3. On the news front, HSBC Global Research reported that the total gaming revenue (GGR) in Macau for the first 12 days of October was MOP 9.65 billion, with the average daily revenue for the second week of October at MOP 593 million, down 8% year-on-year and down 46% week-on-week, slightly higher than the historical average decline of 39%. With the slowdown in the growth of total gaming revenue in Macau, the bank believes that even with the low base in December supporting growth in total gaming revenue in the fourth quarter of this year, the short-term upside potential for gaming stocks is limited. Citigroup, based on last week's lackluster gaming revenue performance, has revised its estimated total gaming revenue for October down from MOP 23 billion to MOP 22 billion (approximately 83% of October 2019; a year-on-year increase of 6%)
According to the Zhitong Finance APP, gaming stocks generally declined. As of the time of writing, Melco International Development (00200) fell by 3.21% to HKD 4.53; Paradise Entertainment (01180) dropped by 2.56% to HKD 0.76; Sands China (01928) decreased by 1.65% to HKD 17.93; and Wynn Macau (01128) fell by 1.56% to HKD 6.3.
On the news front, HSBC Global Research reported that Macau's total gaming revenue (GGR) for the first 12 days of October was MOP 9.65 billion, meaning the average daily revenue for the second week of October was MOP 593 million, down 8% year-on-year and down 46% week-on-week, with the decline slightly higher than the historical average of 39%. As the growth of total gaming revenue in the Macau industry slows, the bank believes that even with a low base supporting growth in total gaming revenue in the fourth quarter of this year, the short-term upside potential for gaming stocks is limited. Citigroup, based on last week's lackluster gaming revenue performance, has lowered its estimated total gaming revenue for October from MOP 23 billion to MOP 22 billion (approximately 83% of October 2019; a year-on-year increase of 6%)
