Macau gaming stocks fell yesterday after government data showed an unusually sharp slowdown in the territory's gaming revenue growth.
In addition, Sands China stands to book a charge of up to US$101.1 million because it withdrew its appeal to gain two land parcels, thereby ending its hopes of building a multibillion-dollar casino on the land.
Hong Kong shares of MGM China yesterday dived 6.24 per cent, with Melco Crown Entertainment down 5.16 per cent, Galaxy Entertainment down 4.25 per cent and SJM Holdings down 4.06 per cent. Only Wynn Macau, down 0.95 per cent, and Sands China, down 0.75 per cent, were comparatively stable.
Macau's gaming revenue rose 7.3 per cent to 26.08 billion patacas last month, according to Macau government data. This is the slowest growth since July 2009.
From January last year to April, the year-on-year growth of Macau's gaming revenue was between 20 and 60 per cent every month, hitting a high of 57 per cent last August.
'One of the main reasons is the slowdown in VIP revenue. I do not rule out the possibility of a slowdown in the China economy as a factor,' said a Hong Kong stock analyst.
