Wynn Resorts, Las Vegas Sands lead rally in Macau casino stocks on reopening hopes

Macau gross gaming revenue fell 10.7% in October to $3.9B patacas ($482M) compared to a year ago, according to data from the Gaming Inspection and Coordination Bureau. The GGR tally was worse than the -8.5% consensus mark anticipated by analysts.

October casino GGR was up 31.6% on a month-on-month comparison with some tourism channels to Macau from the Mainland open and the Golden Week holiday period falling during the month.

"This implies a daily run-rate of MOP126 million, representing a meager 15 percent of pre-Covid levels – which is not surprising at all under the circumstances," noted J.P. Morgan on the October numbers.

Macau year-to-date gross gaming revenue is down 50.5% to 35.7B patacas through October 31.

Looking ahead, residents of mainland China will now be allowed to visit Macau using an online visa system, although new COVID-19 cases in the region threaten casino traffic in the near term.

Macau casino stocks rallied in early trading on Tuesday. The jumps higher appear to be related to chatter out of Hong Kong that Chinese officials were planning on forming a committee to discuss puilling back on some of the nation's zero-COVID policies.

Macau casino stocks: Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN) +4.16% premarket on Tuesday, Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), Las Vegas Sands (LVS) +3.75% premarket, MGM China (OTCPK:MCHVF) (OTCPK:MCHVY), MGM Resorts (MGM) +1.91% premarket, Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF) (OTCPK:SJMHY), Melco Resorts & Entertainment (NASDAQ:MLCO) +6.05% premarket, Studio City International (MSC).