New | Gaming stocks surge in Hong Kong, but CK Property tumbles the day after debut
Macau casino shares climbed on Wednesday in Hong Kong as investors scour regional markets for bargains even though there was no visible catalyst or policy to alter the industry-wide slowdown for gaming stocks.
Sands China, the Hong Kong-listed unit controlled by US billionaire Sheldon Adelson, jumped 5 per cent to close by the midday break at HK$29.85, rebounding from its 52-week low on Wednesday, while Galaxy Entertainment posted a 3.6 per cent increase to HK$36.1, well above its 52-week low of HK$32.52, after the casino operator launch its latest casino-cum-hotel project in Cotai last week.
Analysts at Bank of America Merrill Lynch expect the city’s closely watched gross gaming revenue in June to drop by 32 per cent year on year to 18.5 billion patacas, the continuation of a trend that has seen 12 consecutive monthly declines dating back to May last year.
Wynn Macau, the China unit controlled by casino mogul Steve Wynn, surged the most among the six casino majors, rising 5.6 per cent to HK$14.72.
Joining the gainers, Hong Kong-traded shares in BYD, the Shenzhen-based electric car maker backed by US billionaire Warren Buffett, rose 4 per cent in the morning trading session on Thursday after it announced plans to raise 15 billion yuan in a private placement on mainland China.
On the other side of the ledger, shares in CK Property plunged by 5.7 per cent to HK$69.9, reversing from its solid market debut on Wednesday. Li Ka-shing’s telecom-energy conglomerate CK Hutchison gave up 3.6 per cent to close at a five-day low of HK$113.8.
All Chinese oil majors and internet giant Tencent finished in the red for the morning session.
