Price of Macau gaming shares begin inching up again

Investors and analysts wondered over the weekend, as Macau completed its worse month of gambling growth in the past couple of years, whether the worst was over.
The price of gaming company shares with a presence in Macau began inching up last week after dramatic declines following concerns some Chinese gamblers were staying home during the World Cup Soccer matches or the Macau Monetary Authority was cracking down on usage of China’s UnionPay Cos handheld card swipers.
In a research note published over the weekend, Karen Tang, gaming analyst for Deutsche Bank, said she believed “the worst is almost over.”
Explaining her reasoning, Tang noted that “Historically, Macau stocks started to re-rate when Gross Gaming Revenue growth hit the bottom, and June will be it. We feel that the market is, by now, well aware that the World Cup, which ends July 13, is having a severe short-term impact on Macau, and that June GGR might fall 2% to 5%.”
As for the financial concerns, the Macau government clarified the policy it has on the use of cash cards. Francis Tam explained that contrary to media reports the Macau Monetary Authority had not asked jewelers to move out of casinos. Only, he said, the jewelry and watch retailers operating in casinos are banned from adding new card devices starting in July.
The recent decline in share prices, said one analyst, gives investors “some degree of comfort to bargain hunt.”
Still a concern, however, was the probe being conducted by U.S. authorities into the possibility of money laundering in casinos operated by American-based companies.
Agents of the U.S. Internal Revenue Service’s criminal enforcement unit reportedly had gone to Macau to review money flow in and out of the casinos.