Asia bulletin: Macau travel ban fuels share price tumble
Following news of shares dropping 10% on average in Macau, which details HK$35bn ($4.4bn) lost in terms of market capitalisation across the six Macau casino concessionaires between Friday and Monday, stocks have further tumbled this Tuesday.
HXEX figures detail specific market cap losses for each of Macau’s six concessionaires, with SJM Holdings down some 19% on Monday’s figures, slumping to a close of HK$2.90, down from HK$3.60 yesterday.
Things have worsened for Wynn Macau, too, which is down a further 27% following a 13% market capital loss reported on Monday; the most significant blow for any of Macau’s concessionaires.
MGM China is also down some 20% from Monday, and Sands China 23%. Melco International Development has also been hit hard with losses of 25%.
In truth, market losses are leaving none of Macau’s concessionaires unaffected. However, Galaxy Entertainment is the least affected by the market pinch, being 15% down from Monday’s figures.
This is the second crash in as many weeks for Macau and comes following a travel ban implemented on local regions in the Guangdong province.
Alongside Macau’s travel ban on incoming tourists, China as a whole has some 51 million people in lockdown.
The impact of Russia’s war in Ukraine cannot be ignored either, as this has had a detrimental effect on stocks worldwide.
The amalgamation of these factors, particularly the negative impact of Covid-19, is what is driving the market downturn in what was once the most lucrative region for casino operators worldwide.
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