Macau casino stocks plunge amid fears of new Covid-19 restrictions

There’s been a sudden rise in Covid-19 cases in the city of Guangzhou, in neighbouring Guangdong province.

Macau.- Stocks in Macau casino operators have been hit following a new outbreak of Covid-19 cases in the city of Guangzhou, in neighbouring Guangdong province. Authorities in Guangzhou have announced the preventive closure of schools and restaurants in a bid to control the increase in cases.

Melco Resorts shares fell 9.39 per cent premarket on Monday, while Wynn Resorts shares fell 6.36 per cent. Las Vegas Sands stocks fell 8.65 per cent in early trade. 

A week ago, Liang Wannian, a senior official of the National Health Commission’s Covid-19 response team, suggested in an interview with the state broadcaster China Central Television (CCTV) that China’s zero Covid-19 policy could continue beyond the first quarter of next year.

Fitch Ratings has predicted that Macau gross gaming revenue (GGR) will reach only 70 per cent of 2019 levels in two years’ time.