Hong Kong-listed stocks directly and indirectly linked to Macau gaming beat the midweek sell off trend seen on the Hang Seng and other Asian markets, after a bullish report on the local industry from Morgan Stanley.
Morgan Stanley said it is more positive about the Macau gaming and property sectors following what it called ‘visible signs’ of improvement in visitor arrivals and gaming revenue since the turn of the year.
The company upgraded casino operator Galaxy Entertainment Group and the Macau conglomerate Shun Tak Holdings (which has property and passenger ferry interests in Macau) to overweight, and upgraded Melco, a joint venture partner in Macau with the Australian casino operator Crown Ltd, to equal weight from underweight.
Galaxy shares climbed 12 percent on the news, to HKD1.60. Melco rose 11 percent to HKD3.58, and Shun Tak jumped 9.8 percent to HKD3.14.
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