Gaming stocks in Hong Kong are experiencing a broad-based rally.
At the time of writing, Sands China Ltd (01928) shares are up 4.17% to HK$13.75. Melco Int'l Dev (00200) has gained 3.24%, trading at HK$3.50. Wynn Macau (01128) is 3.03% higher at HK$5.44, while MGM China (02282) has advanced 2.55% to HK$10.45.
Driving Factors
The positive momentum follows industry data indicating a recovery in Macau's gaming revenue. The estimated gross gaming revenue for the first 19 days of July reached approximately MOP 12.05 billion. The average daily revenue for the preceding week was around MOP 679 million, which is roughly 9% higher than the MOP 621 million daily average recorded in the week of July 6.
Analyst Commentary
Analysts point to a fading negative impact from global sporting events. One major bank noted that the latest weekly figures suggest the disruptions caused by the recent football World Cup are continuing to diminish.
Another leading financial institution added that with the conclusion of the World Cup, summer tourist arrivals are expected to rebound. Coupled with the ongoing non-gaming events in Macau, gaming revenue is projected to improve month-on-month.
Monthly Outlook
If the average daily revenue for the remainder of July stays within a range of MOP 670 million to MOP 740 million, the full-month total could reach between MOP 201 billion and MOP 209 billion. This would represent a year-on-year decline of 5% to 9%, a significant improvement compared to the 12% drop seen in June.
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