13 December 2018

Gaming plays stay on a winner

General calm prevailed on the Hong Kong stock market Tuesday, although Macau gaming plays rode high again after Morgan Stanley and Citigroup both raised outlooks for the sector’s revenue growth as well as the target prices of all six licensed operators.

The Hong Kong benchmark Hang Seng Index rose 28 points, or 0.13 percent, to 22,712 points. The Hang Seng China Enterprises Index, the main gauge for H shares, fell 0.53 percent to 10,236; while the Shanghai Composite Index gained 0.08 percent to end the day at 2,047 points.

Morgan Stanley said it expects Macau’s gaming revenue to grow 18 percent this year. Citigroup is even more optimistic, suggesting the expansion could be 20 percent. Galaxy Entertainment (00027.HK) rose 5.7 percent on the news, while Sands China (01928.HK), MGM China (02282.HK), Wynn Macau (01128.HK) and Melco Crown Entertainment (06883.HK) gained between 3.5 percent to 4.8 percent — all of which were fresh highs. SJM Holdings (00880.HK) ended the day up 2.8 percent.

Blue chips put in a mixed performance. Garment exporter Li & Fung (00494.HK) jumped nearly 10 percent after the group said it will announce a three-year plan — including factory compliance changes — in March.

Investors also piled into the sports and apparel sector, with all players making notable gains. China Dongxiang Group (03818.HK) was the best performers, rising 7.8 percent. ANTA Sports Products (02020.HK) was up 4.4 percent and Li Ning Co. (02331.HK) 3.9 percent by the market’s close.

Investors started to take profits in the software and technology sector after strong surges over the last few sessions. Tencent (00700.HK) dropped 0.3 percent, Kingsoft Corp. (03888.HK) gave up 4 percent and NetDragon Websoft (00777.HK) shed nearly 2 percent.

Logistics plays shared the same misfortune. Gamma Logistics (08310.HK) dropped 3.7 percent after doubling its price in the previous session. Kerry Logistics Network (00636.HK) was down 4.2 percent and Guangdong Yueyun Transportation ended 6.1 percent lower for the day.

– Contact the writer at [email protected]



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