Coronavirus-hit casino stocks on sale

China’s Macau shutdown is a great short term gateway to long term growth

Vikram Barhat 26 February, 2020 | 1:32AM
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Casino table

One of the hardest hit by the coronavirus jitters is the lucrative casino and gaming industry of Macau, the only region in China with legalized gambling. 

The epidemic forced the local government to suspend all gaming operations for over two weeks. The fear of a sharp drop in Macau gaming revenue, as a result, triggered a sell-off in China-sensitive casino and gaming stocks, wiping out any gains they had made this year. Leading operators with significant revenue exposure to Macau have fallen between 3% and 14% for the year to date, as of Feb 20. For the same period, the MVIS Global Gaming Index has shed nearly 2% compared to 24% gains for the S&P 500.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Las Vegas Sands Corp35.62 USD-4.40Rating
Melco Resorts and Entertainment Ltd ADR9.76 USD-3.56Rating
MGM Resorts International39.58 USD-3.77Rating
Wynn Resorts Ltd81.01 USD-2.40Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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