Macau casino firms experience second share slump
$5,000 Welcome Bonus
The combined market cap of the Hong Kong-listed sextuplet plummeted by 8.7% from Friday to Monday to stand at approximately $46.66 billion. It followed a 6.3% drop last weekend to about $51.56 billion despite news that the government for the former Portuguese enclave had agreed to extend the operators’ concessions by a further six months to the end of this year.
Macau is home to over 40 casinos operated by MGM China Holdings Limited, Galaxy Entertainment Group Limited and Melco Resorts and Entertainment Limited. The operators are now worth a combined $4.47 billion less than they were on Friday.
Wynn Macau Limited was the hardest hit by last weekend's depression as the value of its individual shares fell by 13.2%.
SJM Holdings Limited, which operates Casino Grand Lisboa and Grand Lusboa Palace, saw a 12.3% slump in the value of its individual shares over the weekend. Sands China Limited suffered a 11.6% decrease to approximately $1.99. Melco International Development Limited's share value dropped by 11% to about $0.76. MGM China Holdings Ltd experienced a 10.4% depreciation to nearly $ 0.52.
Hong Kong's Hang Seng index fell by 4.97% over the course of 72 hours from Friday to close to 19,531.66. The index hasn't been under the 20,000-point benchmark since the global financial crisis of 2008.
The fall in the aggregated value of shares in Macau casino operators is attributed to the continuing local spread of the Omicron variant of coronavirus and the global financial impacts of Russian invasion of Ukraine. Mainland China is experiencing its worst outbreak of Coronavirans since the pandemic.
