Trade war pause boosts casino operators’ stock

Las Vegas’ casino operators with a presence in Macau saw their stock value rise after the US and China announced a pause in their trade war.

US.- A trade conflict between the US and China has been holding the whole world’s attention, but the recent announcement of a pause in the dispute has had a major impact on casino operators. US-based companies with a presence in Macau saw their stock value rise after the recent news and even reached their highest price in the last month.

Shares of Wynn Resorts, Las Vegas Sands Corp. and MGM Resorts International saw a great impact from the trade war impasse and posted major increases in their trade value. Wynn Resorts stocks jumped 9.5% to US$119.79, while Sands advanced 6.1% to US$58.34 and MGM Resorts rose 3.9% to US$28.02. Wynn and Sands get more than half their revenue from Macau operations, while MGM generates about 16% of its earnings from the Chinese territory.

“The bottom line here is that despite a modestly impressive headline number for November, neither the underlying demand trends nor the regulatory outlook and competitive environment seem conducive for current Macau operators,” Brian McGill, gaming analyst at Telsey Advisory Group, said in a note on Monday.

However, Stifel analyst Steven Wieczynski thinks differently and explained the Macanese market “continues to hold up better than the ‘fear’ that is associated with it.”