Macau casino stocks are higher in early trading as the sector looks to shake off a tough 2019. Though Macau GGR was reported to have dropped 13.7% in December, that decline was highly anticipated by analysts who telegraphed to investors the reason for the soft month.
Turning the page on 2019, Nomura Instinet starts off the new year with an optimistic view of the sector.
"We expect positive GGR growth to help drive another year of stock price outperformance for operators with the newest properties MLCO and MGM. Potential catalysts include the commencement of a new Henquin rail spur and light rail system, political détente between China and the U.S., and a stabilizing economy in China. A black swan positive would be initial indications from Macau's new government on reasonable steps license holders need take to retain their concessions," forecasts analyst Harry Curtis.
Looking at the short term, Nomura sees Macau January GGR coming in flat vs. the consensus expectation for -1.5% growth.
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