Macau – Over the last month, stocks and shares in gaming corporations in Macau have plummeted, mainly due to lack of spending activity in the special administrative region following the outbreak of coronavirus.
However, it has been reported today that trading figures are showing positive signs of improvement as two of Macau’s major gaming corporations see stocks and shares rise more than two percent.
The deadly virus looks to be under control and showing signs of slowing down, and Las Vegas Sands and Wynn Resorts, who have both been victim of poor activity in Macau, have experience stocks rises of 2% and 2.3% respectively.
Wynn Resorts currently operates Wynn Macau, whereas Las Vegas Sands operates Sands Macao, two of the most popular casino hotel resorts in the autonomous region on the south coast of China.
Senior Research Analyst of Merrill Lynch, an American investing and wealth management division of Bank of America, Shaun Kelley commented:
“China’s economy may be one of the largest opportunities for cyclical improvement as we move through 2020, and green shoots were very clear in our December MMAT and that is before the impact of a Phase 1 trade deal.”
“Rising short-term liquidity could also provide a boost, especially if Beijing loosens up on monetary policy or loans. [Wynn Resorts] and [ Las Vegas Sands] now screen as two of the best risk-rewards across our coverage on a mid-cycle and risk-adjusted basis.”
Reportedly, gross gaming revenue is down more than seventy percent since the beginning of February due to lack of spending activity in the special administrative region despite Chinese Lunar New Year festive celebrations.