Why Macao’s Casino Stocks Continued to Gain in March



Macao’s casinos’ March rise

Macao’s casino stocks continued to gain value in March 2017. In the month, Wynn Resorts (WYNN) was the biggest gainer with a 19.9% rise, followed by Melco Crown Entertainment (MPEL) at 13.9%. Las Vegas Sands (LVS) rose 7.6%, and MGM Resorts (MGM) rose 4.2%.

The rise in March followed Macao’s seventh consecutive month of recovery. Reports that its VIP segment remained strong in March also helped improve investors’ sentiments.

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2017 performance

On March 28, 2017, WYNN Resorts continued to be the biggest gainer year-to-date (or YTD). It had risen 33.3% YTD, followed by MPEL, which had risen 17.2%. LVS had risen almost 6.7% YTD in the same period. MGM Resorts was the only loser, having fallen ~5% YTD.

The Market Vectors Gaming ETF (BJK), which acts as a proxy for the gaming and casino industry, had risen 11.3% YTD as of March 28. The broader market, represented by the SPDR S&P 500 ETF (SPY), had risen ~5.2% in the period.

Series overview

In the following series, we’ll discuss how Macao’s gaming industry has been performing lately by analyzing key indicators such as gross gaming revenues and visitor arrivals. We’ll also take a look at how the Chinese economy will affect the companies in the Macao region.


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