Melco leads rise in Macau's casino stocks on China optimism

Sands China

09/01/2023 06:26

** Shares of Melco International  0200.HK  rise in Macau's
casino-related stocks, rising as much as 6.7% to HK$9.72,
tracking business recovery optimism on China reopening its
borders
    ** Stock at its highest since Feb. 18, 2022     
    ** China reopened its borders, including with Hong Kong, on
Sunday, after nearly three years of COVID closures and
restrictions.
    ** It also resumed issue of tourist and business visas for
mainland residents to travel to Hong Kong and Macau; ferries
between the two special administrative regions resumed gradually
beginning Sunday 
    ** HSBC says stocks of hotels, airliners, and others exposed
to China's grand reopening have climbed higher and could push on
    ** Expects growth momentum across Asia to gather steam, led
by China 
    ** Regional brokerage UOB's Kay Hian says near-term
valuations of Macau gaming stocks are moderately stretched
following recent rally ahead of China's emergence from lockdowns
    ** Adds sector's valuation upside capped by heavy
commitments in non-gaming facilities
    ** Stock of casino operators SJM  0200.HK , MGM China
 2282.HK , Sands China  1928.HK , Galaxy  0027.HK , Wynn Macau
 1128.HK  rise between 2.1% and 4.5% 
    ** Hang Seng Commerce & Industry Index  .HSNC  rises 1.9%
while Hang Seng Composite Index  .HSCI  and the benchmark Hang
Seng Index  .HSI  climb 1.5% each
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))