Hong Kong Stock Volatility | Gaming Stocks Fall Across the Board, Macau's Daily Average Gambling Revenue During Spring Festival Falls Short of Expectations, Galaxy Cuts February Revenue Forecast

CNBC Finance App reports that gaming stocks are collectively declining. As of the latest update, MGM China (02282) fell 4.06% to HKD 13.01; Melco International Development (00200) dropped 4.21% to HKD 4.55; Sands China (01928) decreased 3.04% to HKD 18.18; Wynn Macau (01128) declined 1.68% to HKD 5.84.

Citigroup released a research report stating that, according to industry sources, the total gaming revenue in Macau for the first 22 days of February may have reached approximately MOP 14.3 billion. Although the gaming revenue during the fourth to sixth days of the Lunar New Year was strong, averaging about MOP 1.2 to 1.3 billion per day, the VIP lounge win rate during the first four days of that week was significantly below normal levels. Industry sources indicate that VIP gaming volume decreased by about 8% to 10% month-over-month, and mass-market gaming revenue fell by approximately 10% to 12%. Due to weaker-than-expected trends before the Lunar New Year, the bank has lowered its February gaming revenue forecast from MOP 20 billion to MOP 19.5 billion, representing a 1% year-over-year decline.

UBS also stated that, based on its channel surveys, during the Chinese New Year holiday (February 16-22), Macau’s daily average gambling revenue was about MOP 786 million, below market expectations of approximately MOP 900 million to 950 million per day. Although initial demand was weak, the transaction volume accelerated in the last three days (February 20-22), reaching daily amounts of MOP 1.2 to 1.3 billion, representing a year-over-year increase of about 10% to 15%. This brought the average daily gambling revenue for the month so far to approximately MOP 650 million, still an 8% decline year-over-year and an 11% decrease month-over-month.