Macau casino stocks fall as city hit by fresh Covid cases

Wynn Macau (1128) and SJM Holdings (880) saw the biggest daily fall in recent months, shedding 7.8% and 6.4% respectively in their stock value on Wednesday.(Allin photo)

The stock prices of Macau’s six gaming operators dropped by 2.7% to 7.8% on Wednesday after the city entered a state of “immediate pandemic prevention” as a result of fresh Covid-19 cases found in a local family.

Wynn Macau (1128) and SJM Holdings (880) saw the biggest daily fall in recent months, shedding 7.8% and 6.4% respectively in their stock value on Wednesday.

In the wake of the fresh cluster of Covid cases found in Macau, gaming analysts at Citibank have downgraded the August and September revenue forecasts for the city’s casinos. Gross gaming revenues in August are now forecast to be MOP6.5 billion, down from the original MOP8.5 billion while the September figure is adjusted to MOP7.5 billion from the original MOP10 billion.

Macau’s Chief Executive announced on Wednesday that the government was not ordering the closure of the city’s casinos this time around, adding that he was confident the fresh outbreak could be brought under control within 14 days.

Meanwhile the Macau government has launched universal Covid testing, setting up 41 test stations across the city. The entire population, including non-resident workers, will need to undergo nucleic acid testing by 9 am on 7 August.