Macau casino stocks rise after easing of Covid-19 countermeasures
The shares of Macau casino operators rose between 4 and 8 per cent. The Hang Seng Index rose by 1 per cent.
Macau.- Macau casino stock prices rose after Macau’s Novel Coronavirus Response and Coordination Centre extended Covid-19 test validity for inbound travellers from Guangdong from 24 to 48 hours. The shares of Macau casino operators rose between 4 and 8 per cent. The Hang Seng Index rose by 1 per cent.
According to Asian Gaming Brief, analysts said: “This is still far from the more normal requirement of 7-day validity last year and it’s unlikely to move the needle for actual demand, in our view. That said, directionally speaking, this can still be seen as a baby step toward a more normal travel/mobility environment, hence we view it as positive.”
Despite the gains, analysts remained very cautious about Macau’s near-term recovery due to China’s ongoing Covid-19 crisis.
A few days ago, the Gaming Inspection and Co-ordination Bureau (DICJ) reported that mass-market games, including slot machines, accounted for nearly 72.8 per cent of all Macau casinos’ gross gaming revenue (GGR) in the first quarter of 2022, at nearly MOP12.94bn (US$1.60bn).
However, mass-market revenue was down 8.8 per cent year-on-year and 10.9 per cent quarter-on-quarter. Mass-market games, including slot machines, accounted for 74.3 per cent of Macau’s GGR in the fourth quarter of 2021, at nearly MOP14.18bn (US$1.77bn).
Macau VIP gaming promoter bill passes first reading
Macau’s Legislative Assembly has approved the first reading of the new bill on junket businesses and satellite casinos. In the first reading, 30 MPs voted in favour while one voted against the bill.
Some of the legislators who spoke at the debate questioned the viability of satellite casinos continuing to operate under the proposed framework. They raised concerns that local employment could be affected as a result.
