22 January 2019

Macau gaming plays tumble on slow revenue growth

The Hong Kong stock market failed to recoup the 600-plus points it lost on Tuesday, even after markets overseas steadied overnight.

The Hong Kong benchmark Hang Seng Index (HSI) rebounded more than 200 points in the morning session, but the index slid back after Macau released gaming revenue data for January. The HSI ended 128 points, or 0.6 percent, lower at 21,269. The Hang Seng China Enterprises Index, the main gauge for H shares, dropped 0.41 percent to 9,470 points.

Macau gaming revenue rose just 7 percent year-on-year last month, the slowest growth since October 2012. Macau casino operators took a dive on the news, with Sands China (01928.HK) and Galaxy Entertainment (00027.HK) both shedding over 7 percent to be the two worst-performing blue chips of the day. Other players also had notable falls.

After dropping 24 percent within two trading days, handset and personal computer maker Lenovo (00992.HK) rebounded more than 5 percent before ending 1.2 percent higher for the day. Investors also piled into other handsets players; Coolpad (02369.HK) jumped 4.7 percent to a three-year high after Goldman Sachs included it in its “conviction buy” list. Handset component manufacturer BYD Electronic International (00285.HK) added 8.7 percent.

Pharmaceutical e-commerce platform CITIC 21CN (00241.HK) lost 8.5 percent after Ren Bingzheng, vice president of finance at e-commerce giant Alibaba, said the previously announced acquisition of CITIC 21CN (00241.HK) is yet to be completed and Alibaba has no intention of injecting assets into the group. Ren also denied Alibaba is planning a reverse merger.

– Contact the writer at [email protected]



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