Bloomberg News

SJM, Sands China Lead Casino Stock Rally on Growth Outlook

October 06, 2011

(Updates with closing prices in second paragraph.)

Oct. 6 (Bloomberg) -- SJM Holdings Ltd., Asia’s biggest casino operator, and Sands China Ltd. led gains in Hong Kong- listed gambling stocks on speculation the plunge earlier this week went too far given growth prospects.

SJM climbed as much as 23 percent, the biggest intraday gain in almost three years, to HK$13.14 before closing at HK$12.44 at 4 p.m. Sands China, controlled by billionaire Sheldon Adelson, surged a record 26 percent to HK$18.98.

Today’s gains pared losses from earlier this week, when Macau casinos plunged amid concern slowing growth in China and slumping stock markets may damp demand. Gambling revenue in the former Portuguese colony grew 39 percent last month, data published Oct. 4 by the city’s government showed.

“The casinos are still quite resilient as shown by gaming revenue in September,” Teng Yee Tan, an analyst at CIMB Securities HK Ltd., said in an e-mail reply to Bloomberg News today. “The market is expecting positive surprises to happen every month, but that’s not realistic. Growth normalization will come at some point in time.”

Both Wynn Macau Ltd. and MGM China Holdings Ltd. jumped 20 percent. Galaxy Entertainment Group Ltd. rose 18 percent.

--Editors: Dave McCombs, Terje Langeland

To contact the reporter on this story: Billy Chan in Hong Kong at bchan101@bloomberg.net

To contact the editor responsible for this story: Stanley James at sjames8@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus