Gambling shares have tumbled amid signs that casino revenues in Macau may shrink further in the coming months.
Fitch Ratings yesterday slashed its forecast on the island's gaming revenue growth to 10 to 12 per cent from 15 per cent.
This is the second time in six weeks that the ratings agency has revised down its forecast. On June 8, it lowered its estimate from 20 per cent to 15 per cent.
The latest revision follows disappointing second-quarter results from Sands China, which saw net income fall 40 per cent to US$160.5 million from a year earlier, according to a filing to the Hong Kong stock exchange yesterday. Its revenue of US$1.48 billion also fell short of market expectations of US$1.52 billion.
Last week, Wynn Macau posted a 7.1 per cent drop in revenue in the three months to June, its first quarterly drop since 2009.
Sands China led the stock slump yesterday, with its shares plummeting up to 7.2 per cent at one point but climbing back to close 4.95 per cent lower at HK$21.15.
SJM Holdings, MGM China, Galaxy Entertainment and Wynn Macau all shed between 2.5 and 3.5 per cent.