Update | Macau stocks down as casino revenue set to fall
CLSA predicts takings in Macau will fall 1pc this year with an unpromising short-term outlook
Shares in all six Macau casino operators slid yesterday after a CLSA report predicted gross gaming revenue in the world's largest gambling hub would fall 1 per cent this year, compared with its earlier forecast of 5 per cent growth.
Wynn Macau led the drop, closing down 3.95 per cent. Galaxy Entertainment Group was not far behind, falling 3.54 per cent to HK$46.35, its lowest close since August last year. SJM Holdings shed 2.9 per cent, as did Sands China. MGM China lost 2 per cent and Melco Crown 0.87 per cent. The benchmark Hang Seng Index declined 0.6 per cent.
The CLSA note, written by analysts Aaron Fischer and Richard Huang, said the short-term outlook, including the National Day holiday next week, was unpromising.
"October will run up against a tough base and there will be some teething problems around the new smoking ban," the report said. "Visiting mainland government officials in December for the Macau chief executive inauguration may cause some customers to stay away during that precise period."
Meanwhile, Macau junket investor Imperial Pacific International said it would devote US$7.1 billion, more than double the amount originally outlined, for its casino resort on the island of Saipan as operators looked for new opportunities to diversify away from Macau.
It announced late on Wednesday that it would spend an extra US$3.94 billion, up from the original estimate of US$3.14 billion, to build a town centre hotel and an integrated resort with gaming facilities in five phases.