All leading Hong Kong gaming-related stocks declined yesterday after the release of Macau gaming figures for last year and analysts' expectations of a shaky outlook this year.
Galaxy Entertainment Group fell 5.71 per cent to HK$1.32, while Stanley Ho Hung-sun's SJM Holdings dipped 0.61 per cent to HK$1.62. His son Lawrence Ho Yau-lung's Melco International Development dropped 2.83 per cent to HK$2.40 and Shun Tak Holdings, controlled by his daughter, Pansy Ho Chiu-king, fell 3.73 per cent to HK$2.32.
According to Macau's Gaming Inspection and Co-ordination Bureau, although the city's gaming revenue grew 31 per cent to 108.77 billion patacas last year, its fourth-quarter take fell 7.3 per cent from the previous quarter to 24.08 billion patacas, the third consecutive quarter of decline.
'Normally, the fourth quarter is the high season. A decline in the fourth quarter is not good for Macau's gaming sector,' said Credit Suisse analyst Gabriel Chan.
Mr Chan expects a 4 per cent drop in gaming revenue this year, while Deutsche Bank analyst Karen Tang sees an even worse 14 per cent drop, followed by a 6 per cent fall next year.
The last time Macau's gaming revenue declined was in 1999, when it dropped 10 per cent.