Macau: Gaming stocks see new tumble as mainland Covid restrictions increase

After trading closed in the Hong Kong Stock Exchange at 4:30pm, Sands China had reported a 12 per cent drop in its share price to some HK$15.6 (US$2), Galaxy Entertainment Group a 5 per cent drop to HK$39, MGM China reporting a 4.92 per cent drop to US$0.58, Wynn Macau a 13 per cent fall to HK$5.12, Melco International an 11 per cent drop to HK$5.9, and SJM Holdings a 12.3 per cent decrease to HK$3.2.

The decrease comes as Hong Kong continues to face its worst pandemic outbreak and as the neighbouring Chinese city of Shenzhen imposed a strict lockdown on its 17 million residents after reporting 86 new locally transmitted COVID-19 cases.

Travellers who visited certain areas of Guangdong province will also now have to serve seven to 14 days in quarantine upon arrival in Macau, including visitors from Zhongshan and Shenzhen cities and to areas of Guangzhou, Yangjiang and Dongguan.

The number of tourist arrivals in the Macau SAR had already reported a 43 per cent drop between March 3 and 9 when compared with the previous week.

Covid cases have doubled nationwide to nearly 3,400, the highest daily figure in two years.

Almost US$3.5 billion had vanished in market capitalization of the local gaming concessionaires just a week ago, despite a Macau government announcement that a six-month extension would be handed to all current 20-year licenses until December 31, 2022.

Gaming operators had been slowly recovering their stock values following the loss of some HK$143 billion in a single day last September after the Macau government unveiled its draft bill proposal for amending the local gaming law, almost a third of their value.