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%)