For the second consecutive weekend and the aggregated value of shares in the six-strong club of licensed Macau casino operators has reportedly dropped significantly owing to a number of factors including the ongoing presence of coronavirus.
According to a report from Inside Asian Gaming, the combined market cap of the Hong Kong-listed sextuplet plummeted by 8.7% from Friday to Monday to stand at approximately $46.66 billion. The source detailed that this followed an analogous 6.3% drop last weekend to about $51.56 billion despite news that the government for the former Portuguese enclave had provisionally agreed to extend the operators’ concessions by a further six months to the end of the year.
Significant slide:
Macau is currently home to over 40 casinos operated by MGM China Holdings Limited, Galaxy Entertainment Group Limited, Melco Resorts and Entertainment Limited and SJM Holdings Limited as well as the local Wynn Macau Limited and Sands China Limited subordinates of Wynn Resorts Limited and Las Vegas Sands Corporation respectively. These operators are now together reportedly worth a combined $4.47 billion less than they were on Friday as all but one saw the value of their shares plunge by at least 10%.
Leading loser:
Inside Asian Gaming reported that Wynn Macau Limited was the hardest hit by last weekend’s depression as the value of its individual shares fell by 13.2% to stand at something like $0.65. The source explained that this latest price equates to a dip of over 67.8% when compared with the same period last year.
Compatriot contraction:
SJM Holdings Limited, which operates the iconic Casino Grand Lisboa in addition to the much larger Grand Lisboa Palace, reportedly experienced a 12.3% slump in the value of its individual shares over the weekend to roughly $0.41 while Sands China Limited suffered a 11.6% decrease to approximately $1.99. The owner of local casino behemoth Melco Resorts and Entertainment Limited, Melco International Development Limited, purportedly moreover had a bad couple of days with its share value having dropped by 11.6% to about $0.76 as MGM China Holdings Limited experienced a 10.4% depreciation to nearly $0.52.
Larger limitation:
To make matters worse and the source noted that the overall value of Hong Kong’s Hang Seng Index furthermore fell by 4.97% over the course of the 72 hours from Friday close to 19,531.66. This influential bourse has purportedly not been under the 20,000-point benchmark since the global financial crisis of 2008 with the notable exceptions of February of 2016 and the second half of 2011.
Various vindication:
This most recent fall in the aggregated value of shares in the Macau casino operators has reportedly been attributed to a number of factors including the continuing local spread of the Omicron variant of coronavirus and the global financial impacts of the Russian invasion of Ukraine. Mainland China is purportedly experiencing its worst outbreak of coronavirus since the start of the pandemic with around 51 million people currently being subjected to associated lockdown provisions.