After disappointing first week results, Bernstein said that Macau is set to reach improved year-on-year numbers.
Macau.- Investment-management firm Brokerage Sanford C. Bernstein Ltd reported that Macau is set to experience a 13 to 15 percent year-on-year growth this month, up from the underwhelming first week results recorded.
Bernstein said that Macau could reach US$2.4 billion this month: “Our channel checks indicate that Macau’s gross gaming revenue (GGR) month-to-date (until April 23) was US$1.9 billion, with an average daily rate (ADR) of US$81.3 million. Whilst GGR during the first weeks wasn’t as high as expected, casino stocks in Macau have reached its highest level since August 2015, as reported by Bloomberg. Casino stocks had plunged after President Xi Jinping launched his anti-corruption campaign. “Casino stocks have almost fully priced in an industry recovery in 2017 so shares may end the year roughly unchanged,” annalyst for CMB strategist International Securities Ltd. Daniel So assured.
The report included an explanation from the brokerage about the reasons for the negative reaction: “The MTD ADR number was lower than our expectation and relatively disappointing considering the fact that last week actually had two weekends.”