Casino shares can still go down further: analyst

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Shares of Macau casinos can still go down further, says Victor Yip, analyst at UOB Kay Hian in Hong Kong. “Gaming stocks have outperformed relative to other sectors year to date and therefore the sector could be very attractive for shorting and for people to take profit,” he told Reuters. “Gaming stocks still could have a little more downside,” he added. Unlike other analysts, Mr Yip is however confident that casino gross gaming revenue growth for the next few months is likely to remain robust due to mainlander´s spending. Shares of Macau casinos listed in Hong Kong slumped yesterday but ended today rising strongly. The drop is attributed to worries that the gross casino gaming revenue growth could slowdown, after Deutsche Bank issued an investors note showing concern about the weakening demand from wealthy Chinese consumers and its potential impact on Macau casinos.