alaxy Entertainment Group fell the most in almost two weeks, leading a drop in casinos as HSBC Global Research said gambling revenue lagged behind its projection for the first 17 days of February.
Galaxy plunged 4.9 percent, headed for the biggest decline since February 6. Billionaire Sheldon Adelson’s Sands China dropped 4.4 percent and Wynn Macau lost 2.9 percent.
Macau’s gambling revenue for the first 17 days of February came in at us$ 1.9 billion and was below HSBC’s estimates, Sean Monaghan, a Singapore-based analyst wrote in a research note dated February 18. VIP, or high-stakes, gamblers may have stayed away to avoid crowds during the New Year holiday, HSBC said.
SJM Holdings dropped 5.3 percent, while MGM China Holdings fell 3.9 percent and Melco Crown Entertainment declined 2.1 percent.
Macau tourist arrivals pulled back to 127,412 on February 16 from a peak of 166,581 on February 12 during last week’s Lunar New Year holiday, according to data compiled by Bloomberg from Macau government statistics.
While mainland tourist arrivals over the Lunar New Year rose 20 percent from the year-earlier holiday, that has not filtered into revenue growth for the industry, CLSA said in a research note. It downgraded Wynn Macau to outperform from buy.
Macau’s casino revenue climbed 14 % to a record us$ 38 billion last year. Late last week, Credit Suisse had forecast February casino gross gaming revenue in Macau could go up by 10 percent year-on-year.