Macau-centric casino stocks opened solidly Monday as gaming revenue in the world's largest gambling enclave more than tripled in March, hitting a post-pandemic high after Beijing ended its harsh zero-Covid policy.
Wynn Macau, Las Vegas Sands, MGM Resorts and Melco Resorts & Entertainment have all been around buy areas. Wynn, Sands and MLCO stock pared early gains, while MGM turned fractionally lower.
WYNN stock is on SwingTrader.
Gross gaming revenue (GGR) in Macau surged 246.9%, year over year, in March to 12.7 billion patacas ($1.58 billion), according to data released by the Gaming Inspection and Coordination Bureau on Saturday. That surpassed the consensus estimate for a jump of 205%, some reports said.
The Macau revenue tally was the highest since January 2020, just before Covid-19 pandemic lockdowns began. Macau is an administrative region in China and the world's largest gambling hub.
In the full first quarter, GGR leapt 94.9% to 34.6 billion patacas. Macau gained from the easing of travel curbs and the return of some international travel.
The Chinese New Year holiday in late January also boosted local traffic at Macau casinos.
Gaming Stocks
Shares of Wynn Resorts rose 1.3% to 113.33 on the stock market today. after hitting a 20-month high of 117.17 intraday. Wynn stock is consolidating after a huge rally since last summer. Shares were already actionable last week as they rebounded from the 50-day line.
MLCO stock gained 1.7% to 12.95 Monday. It's working on a 14.20 double-bottom buy point, the MarketSmith chart shows. Investors could use a move above the 50-day line as an early entry.
LVS stock climbed 2.2% to 58.72. Shares rallied above their 50-day line Friday, offering an aggressive entry as Sands consolidates over the past two months.
MGM, less Macau-exposed than Wynn Resorts and Las Vegas Sands, reversed lower, closing off 0.4% to 44.25. MGM stock rose above its 50-day line last week within a short consolidation.
Macau: World's Largest Gaming Hub
Wynn Macau parent Wynn Resorts and gaming stocks at large had a volatile 2022 due to the uncertain regulatory state of the industry.
Macau underwent a citywide lockdown in summer of 2022 to combat rising coronavirus cases.
Gaming stocks then soared after September as Macau signaled an easing of Covid-19 travel restrictions, making it much easier for people to return to the world's biggest gambling hub.
In December 2022, China finally and abruptly ended its ultra-strict, zero-Covid policy.
