Gaming stocks skid on fears of economic slump in Macau
Shares of casino operators with operations in Macau were under pressure Thursday after fears of an economic slowdown in Mainland China surfaced.
Wynn Resorts Ltd., Las Vegas Sands Corp., and MGM Resorts International saw their stock prices tumble on the worries, which one gaming analyst described as “overdone.”
Also, Typhoon Nesat swept through southern China on Thursday, closing schools and most businesses in Macau. Casinos stayed open, but the shutdown of ferry service between Macau and Hong Kong across the South China Sea was expected to depress tourist visits.
Macquarie Securities gaming analyst Chad Beynon tried to soothe investors fears, saying much of the trouble Thursday was tied to a Korean casino operator that said it stopped issuing credit play to high-end customers.
“We think concern … is overdone,” Beynon said. “However, we maintain our cautious stance on (high-end customers).”
Shares of Wynn, traded on the Nasdaq Global Select Market, closed at $125.54, down $9.95, or 7.34 percent. Las Vegas Sands shares fell $2.33, or 5.34 percent, to close at $41.33 on the New York Stock Exchange. MGM Resorts, also traded on the New York Stock Exchange, closed at $9.93, down 34 cents, or 3.31 percent.
