Macau casino stocks are falling again as COVID restrictions pick up
Macau casino stocks moved lower after developments in China over the weekend increased concerns that the COVID disruption will extend.
Beijing is now a region of increased focus with authorities in the capital sealing off entrancing of public housing blocks and closing off entire streets with wire mesh fences, according to Reuters.
Meanwhile, the Shanghai government reported 51 new COVID deaths on April 24, which marks the highest daily tally so far. The local government in Shanghai is using a tiered system that divides neighborhoods into three categories of restrictions based on the risk of transmission.
On Wall Street, JPMorgan lowered estimates on Macau gaming stocks earnings estimate due to its earlier projection on the full reopening timeline looking to be too optimistic.
In Hong Kong trading on Monday, Galaxy Entertainment (OTCPK:GXYEF) fell 2.26% and SJM Holdings (OTCPK:SJMHF) fell 4.24%. In the U.S. during the premarket session, there were drops for Las Vegas Sands Corp. (LVS) -2.99%, Wynn Resorts (NASDAQ:WYNN) -2.75%, MGM Resorts International (NYSE:MGM) -2.29%, and Melco Resorts & Entertainment (NASDAQ:MLCO) -1.65%.