Here’s Why Macau Casino Stocks are Spiking Now: MPEL, WYNN, MGM, LVS, FXI
Macau casino stocks grow with SJM Holdings Ltd. and Sands China leading the gains in Hong Kong. This comes after they plunged earlier this week on concerns that China’s slow growth and slumping stock markets (NYSE:FXI) may dampen demand.
“The casinos are still quite resilient as shown by gaming revenue in September,” Teng Yee Tan, an analyst at CIMB Securities HK Ltd., said in an e-mail reply to Bloomberg News today. “The market is expecting positive surprises to happen every month, but that’s not realistic. Growth normalization will come at some point in time.”
SJM Holdings Ltd stock is up 15.49% to $12.38 on the news. Shares are up 0.32% year to date. The stock has traded in a 52-week range between $9.22 and $21.00. Sands China Ltd stock is up 25.03% to $18.88 on the news. Shares are up 9.77% year to date. The stock has traded in a 52-week range between $14.00 and $26.60.