Las Vegas Sands, Casino stocks surge as Shanghai looks set to end lockdowns (NASDAQ:WYNN)
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Casino stocks led the S&P higher on Friday as news of a potential end to lockdowns in China sent gaming stocks skyward.
Per the Associated Press, officials in Shanghai are considering a reopening “in a few days” as case numbers fall. The nation’s most populous city is seen as a key bellwether for the country’s Zero-COVID policy, therefore holding key implications for the gaming capital of the country in Macau.
“[The first quarter] was a difficult quarter for Macau, as it was dealt another blow by COVID in China,” Citi analyst George Choi wrote in a note to clients in April. “However, data points in 2021 suggest that pent-up demand could drive EBITDAs back to as much as ~80% of pre-COVID levels and we remain confident that demand for Macau will swiftly recover as soon as this latest COVID wave is contained.”
Now that this catalyst appears imminent, confidence is flowing through to embattled casino stocks like Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS), Caesars Entertainment (CZR), and MGM Resorts (MGM), all of which were among the top gainers on the day. In fact, Las Vegas Sands (LVS+12.7%) and Wynn (WYNN+11.4%) were the two top performers in the S&P in afternoon trading on Friday.
Macau casino stocks: Wynn Macau (OTCPK:WYNMF), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY), Las Vegas Sands (LVS), MGM China (OTCPK:MCHVF), MGM Resorts (MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF), Melco Resorts & Entertainment (MLCO), Studio City International (MSC).
