Macau measure on illegal money exchange hits casino stocks

Citigroup has suggested that the price drops were excessive.

Macau.- The inclusion of an amendment addressing illegal money exchange in Macau’s proposed Law on Combating Illegal Gambling Crimes hit gaming stocks on Monday. Citigroup’s George Choi and Ryan Cheung said the measure had harmed already fragile investor sentiment but that price declines might be excessive considering positive factors such as increased visitor numbers, the recovery in mass gaming revenues, and improved EBITDA margins.

Galaxy Entertainment Group shares fell by 4.38 per cent on Monday, hitting a three-year low. MGM China Holdings fell by 4 per cent and Sands China lost 2.9 per cent before recovering slightly on Tuesday.