A rebound by casino operators will lift Hong Kong’s benchmark Hang Seng Index by as much as 10 percent by year end, Julius Baer analyst Kelvin Wong told Bloomberg in an interview.
Macau gaming companies will outperform the benchmark equity measure as mass-market spending grows steadily, he said.
Sands China Ltd. and Galaxy Entertainment Group have lead a rout in casino stocks over the past three months amid concern about China’s slowing economy and cooling gross gambling revenue growth in Macau.
“China is not as bad as people think,” Wong told Bloomberg, pointing to targeted stimulus and government measures to open state-owned enterprises to private investment. On casinos, “you can see that top-line growth is slowing down but the mass market is still very strong.”