By Tracy Qu
Macau casino operators' shares rose sharply, fueled expectations of a strong performance during China's weeklong national holiday.
Wynn Macau's Hong Kong-listed shares climbed 5.5% to $7.49 Hong Kong dollars (US$0.96) on Monday morning, Galaxy Entertainment's shares were 7.45% higher and Sands China's shares rose 7.8%.
Citi analysts led by George Choi said their table survey showed record-high Premium Mass volumes during national day holiday. Premium Mass table utilization of around 52% was the highest in Citi's records since the casinos reopened after the Covid-19 pandemic, the analysts said. The gamblers at these tables typically place bigger wagers than normal visitors, without the need of credit from casinos or junkets.
"Premium Mass demand has always been resilient, despite the weak Chinese discretionary spending trends year-to-date. We believe the recently announced policy combo from the Chinese government has further enhanced players' appetite for gaming," Citi said.
Last week, UOB Kay Hian upgraded the sector from market weight to overweight, and said Galaxy Entertainment was its top sector pick. "We expect the strong visitations from mainland China during the Golden Week to boost gross gaming revenue recovery," the analysts said in a research note.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
October 06, 2024 23:25 ET (03:25 GMT)
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