MGM Shares Plummet: Morgan Stanley Says ‘Worst is Over’ for Macau Gaming
Casino stocks were not immune to Monday’s steep drop across all markets. MGM Resorts reported a decline of 1.6% to $20.68 in trading due primarily to disappointing gambling results in Macau last month.
Last year’s results were the worst decline since the Chinese government liberalized the gambling enclave in 2001 with a 30.4% drop-off.
US stocks in general were clobbered Monday with the Dow industrials shedding more than 300 points in afternoon trade, due primarily to a renewed slide in oil prices.
In past years, gambling firms with exposure in Macau have been able to weather similar market-wide share declines.
Macau gaming operator SJM Holdings shares rose 0.33% Monday on news that Morgan Stanley had essentially declared "the worst is over for Macau".
The investment firm issued the following statement: "We expect 2015 to see sequential growth over the following three quarters, driven by supply as Galaxy opens the doors for Phase 2 in May 2015 and [Melco Crown's] Studio City in September 2015."
- Aaron Goldstein, Gambling911.com
