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China's stock market, the Hang Seng Index, saw several share listings for companies in the casino industry take a hit last night, resulting in slower growth for the segment compared to other industries.
Wynn shares dipped despite posting a 58% increase in second-quarter profits, with fears rising over a potential slow ramp-up at its Wynn Palace resort, which only opened its doors in August of last year. Casino operator Wynn Macau saw a 3.6% tumble which resulted in a downward trend for the other casino operator stocks in the region.
Other operators showing less than positive results included Galaxy Entertainment Group, one of the largest operators of casinos in Asia, who saw their stocks dip by 1.9%. Sands China was also unable to escape the fall, although not nearly as rapidly as the Wynn, as it retreated 0.7%. The news is compounded by results in other sectors, which show that the rest of the index has been performing strongly of late.
The news "is not so positive for casino stocks, particularly as far as their valuations are concerned, “Ben Kwong executive director at KGI Asia told Nikkei Asian Review. "I think the valuation is pretty much on the high side. So in the absence of positive news, they will continue to fluctuate within a range in the near-term."
