Despite an overall increase in revenue in Macau casinos last month, shares still decreased at the Hong Kong stock exchange.
Macau casinos show bad result at the stock exchange, following inconsistency with analysts’ predictions with the revenue growth.
Aaron Fischer, head of consumer research at CLSA Ltd. expressed his disappointment with the recent results at the stock exchange. “It’s a little disappointing. It indicated there’s a sharp drop at the end of the month.”
The reason for the negative performance is linked to the recent regulations that have been put forward by the Macau gambling laws. The decision on imposing limits on the tables has hindered further progress of the region that has seen it transformed from a small scale gambling hub to an international casino destination.
Additionally, the government has also been heavily involved in crackdowns of illegal debit card transactions, making it difficult for players to transfer cash to gamble.
Many casinos suffer slump
Galaxy Entertainment shares dropped to HK$60.05, a 3.1 percent decrease. Is also highlights the biggest fall since May 8, once the Hong Kong trading floor closed.
Other casinos suffered in the stock market as well. Asia’s largest casino by revenue, SJM Holdings Ltd, initially went down in the morning session, while later it continued the price decline to a 3.2 percent, once the revenue figures were released. Sands China Ltd. fell 1.4 percent, while Wynn Macau suffered a 1.2 percent decrease.
However, gambling news report that the city’s benchmark managed to record a modest but positive result as it increased 0.9 percent.