After improved GGR results in June, Macau casino stocks posted their highest increase since December, the Bloomberg Intelligence Index revealed.
Macau.- The Macanese government recently revealed that June GGR was better than analysts expected. According to a Bloomberg Intelligence Index, Macau casino stocks shot up their highest since December after the news went public.
The index had a major impact on the industry as its shares posted a 7% growth in Hong Kong trading.
Financial firms had forecast different results for Macau’s GGR. According to Brokerage Sanford C. Bernstein Ltd, June’s results “exceeded expectations”.
“Average daily revenue (ADR) for June was €86.7 million (down 5% from May). While GGR for the first three weeks of June was weaker due to low hold, GGR picked up in the last week,” analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu in a Monday note.
Meanwhile, JP Morgan Securities said Macau’s June GGR was the “best monthly growth so far this year”. “Average daily revenue was quite solid… considering June is seasonally the weakest month of the year,” analyst DS Kim wrote.
According to JP Morgan mass-market GGR in June may grow 18% to 20% year-on-year. VIP GGR “fell only” by 8-9%, “both showing marked improvements versus recent and year-to-date trends”.