Melco leads rise in Macau gaming stocks 2nd day of rally on new licences

Melco International Development

29/11/2022 05:02

** Melco International  0200.HK  leads rise in a second day
of rally of the Hong Kong-listed casino stocks after Macau
government announced all six incumbent casino operators would be
given new licences to operate in the gambling hub from January
 urn:newsml:reuters.com:*:nL1N32M01W
    ** Shares of Melco, whose unit of its subsidiary Melco
Resorts & Entertainment  MLCO.O  has been awarded a ten-year
concession, jump as much as 10.3% to HK$5.99 on their third
straight session of gains
    ** Jefferies says the Macau government's announcement
removes an overhang and should have a positive impact on the
gaming stocks while remaining is the continued zero-tolerance
COVID policy, which leaves uncertainty in the timing of recovery
    ** "Macau has always been reliant on Mainland China visitors
with the non-Mainland China avoiding Macau due to the
unattractive quarantine policy," Jefferies wrote, adding
recovery from COVID is being pushed out by recurrence of cases
and zero-tolerance policy in the city
    ** Shares of Galaxy Entertainment  0027.HK , SJM  0880.HK ,
Sands China  1928.HK , MGM China  2282.HK  and Wynn Macau
 1128.HK  rise between 2.9% and 7.6%
    ** The Hang Seng Commerce & Industry Index  .HSNC  jumps
4.2%, the Hang Seng Composite Index  .HSCI  rises 3.7% and the
Hang Seng Index  .HSI  surges 3.9%
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))