Shares in Macau casino operators slumped on Monday on worries of weakening demand from wealthy Chinese consumers, leading investors to sell stocks that have hit record highs in the past few months.
Shares in the six casinos fell between 6-13 percent during the session, with Galaxy Entertainment the biggest loser, falling 11.4 percent by 0700 GMT. MGM China slid 9.8 percent while Wynn Macau dropped 10.4 percent.
A key reason for the sector slump, which also saw Stanley Ho’s SJM drop 6.7 percent, Sands China 8.6 percent and Melco International Development 9.5 percent lower, was concern that gaming revenue growth would begin to recede towards the end of this year.
Valuations for the billion dollar firms have risen as Macau posted record beating revenue figures since the start of the year, with investors betting on sustained stellar growth in the former Portuguese enclave.
Deutsche Bank analyst Karen Tang wrote in a note that Macau’s growth may disappoint the market after October’s national Golden Week, with Chinese consumer spending slowing.
