Bloomberg News

Galaxy, Sands China Drop as Macau Casino Revenue Growth Slows

October 04, 2011

Oct. 4 (Bloomberg) -- Galaxy Entertainment Group Ltd. and Sands China Ltd. declined for the third day in Hong Kong trading after Macau posted the slowest casino revenue growth in eight months.

Galaxy fell 5.8 percent to HK$8.87 at the 4 p.m. close on the city’s stock exchange after rising as much as 9.1 percent earlier, before the Macau government posted September casino revenue on its website. Sands China dropped 5.5 percent to HK$15.10 after earlier gaining as much as 7.6 percent. The benchmark Hang Seng Index slid 3.4 percent.

Casino gambling revenue in the former Portuguese colony grew 39 percent, the slowest pace since January, to 21.2 billion patacas ($2.6 billion) in September, the city’s Gaming Inspection and Coordination Bureau said. Casino stocks in Hong Kong have plummeted amid concern slowing growth in China and slumping stock markets may damp demand for gambling.

Macau casino revenue is “poised to decelerate as the economy slows,” according to a Deutsche Bank AG report by Ma Jun, the bank’s Hong Kong-based chief economist, Wenjie Lu and Hui Miao. “Macau revenue growth may fall towards 10% in the coming quarters.”

China has raised interest rates five times in the past 12 months to defuse the fastest gains in consumer prices since 2008, raising concern the pace of economic expansion will slow.

Wynn, MGM

Twelve percent of global investors in a Bloomberg poll last week predicted growth in China will slow to less than 5 percent within a year, a pace unseen in the past two decades. HSBC Holdings Plc foresees an expansion of 8.5 percent to 9 percent in coming quarters, with third-quarter figures due on Oct. 18.

Wynn Macau Ltd. fell 0.6 percent to HK$16.64, after earlier gaining as much as 9 percent. Melco International Development Ltd. dropped 0.9 percent to HK$4.35.

SJM Holdings Ltd., Asia’s biggest casino operator, climbed 2.1 percent to HK$10.72 after plunging by a record 26 percent yesterday. MGM China Holdings Ltd. rose 4.3 percent to HK$8.56 after losing 20 percent yesterday.

--Editors: Frank Longid, Suresh Seshadri.

To contact the reporters on this story: Marco Lui in Hong Kong at; Billy Chan in Hong Kong at

To contact the editor responsible for this story: Frank Longid at

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