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MGM China share price hits four year low

MGM China share price hits four year low

Other gaming operators have also suffered major declines in the value of their stock amid the Coronavirus outbreak.

Macau.- MGM China’s share price was tumbled to a four year low as the on-going Coronavirus crisis continues to spook investors.

Yesterday, MGM China’s stock sat at HK$9.14 (€1.04), having reached as low as HK$8.81 (€0.91) on Tuesday.

Its Tuesday value was the lowest since 28 February 2016 and 62% down on its all-time high of HK$24.30 (€2.76) achieved on 14 January 2018.

The decline was also felt by parent company MGM Resorts, whose share price of US$17.53 on Monday was the lowest since 23 March 2016. MGM Resorts closed at US$18.08 on Wednesday.

Wynn Macau fell to a three-year low on Tuesday with a price of HK$14.04 (€1.59) not seen since 5 March 2017. The decline compares with an all-time high of HK$30.15 (€3.43) on 8 April 2018 and represents a 29.8% fall in the space of two months from HK$20.65 (€2,35) on 12 January 2020.

Similarly, parent company Wynn Resorts saw its share price fall to US$80.16 on Wednesday, the lowest since 27 December 2017, before closing at US$80.87.

Stock market pain has been a common theme for Macau’s gaming operators. The industry-wide declines are a result of a massive decrease in visitation to Macau due to the enforcement of measures to contain the spread of Coronavirus, mainly focused on border restrictions.

According to authorities, there were no longer any active cases of COVID-19 in Macau following the release from hospital of the 10th and final confirmed case.

However, operators are forecasting hard times for the industry, with Macau’s GGR numbers tracking 80% down year-on-year during the first eight days of March.

Macau’s GGR fell 87.8% year-on-year in February to MOP$3.10 billion (€342 million).

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coronavirus finance macau mgm china