Investors seem to be positive about the increase in the number of visitors from mainland China at Macau casinos. As such, the share prices of Macau Gaming companies are moving upwards.
Stock prices for top Macau casino operators listed in Hong Kong — including Sands China, Wynn Macau and MGM China — have jumped nearly 20 percent since early June, according to the Bloomberg Intelligence Macau Gaming index.
According to financial times report, the surge in stocks follows renewed inflows of mass-market punters from the Chinese mainland, especially from the nearby megacities of Shenzhen and Guangzhou, where gambling is illegal.
Macau casinos have been battling sinking revenue trends for almost over a year. The US-China trade war and the slowdown in the Chinese economy have been blamed for a decline in footfall of Chinese High-rollers at Macau casinos, which in turn have been taking a toll on Macau GGR.
The recent figures released by Macau’s Gaming Inspection and Coordination, the gaming revenue jumped by 5.9 percent in June. It was the second consecutive month after April when the gaming revenue increased after a long period of decline.
Earlier in May, the Gaming Inspection and Coordination Bureau posted that the year-on-year gross gaming revenue dropped by 8.3 percent to 23.5bn patacas ($2.9bn). It was by far the most significant revenue drop since June 2016.