Macau casino stocks gain as CS points to “green shoots”

Shares in Macau casino operators gained Thursday following a Credit Suisse analysis of the breakdown of May gambling revenue that pointed to “some green shoots.”

The investment bank said VIP gaming rose 3 percent from April, VIP rolling gained 7 percent and mass gaming was up 9 percent.

“Mass revenue was quite decent, even after considering the labour day holiday in May and an extra calendar day,” wrote analysts Kenneth Fong and Isis Wong.

The note also pointed to an improvement in mainland China visitation. The pace of decline was -6 percent in April compared with -13.5 percent in March

“We highlighted in our earlier piece that Macau was hurt by the slower visitation in Hong Kong. We believe the impact is gradually fading,” they wrote.

Melco Crown Entertainment was up almost 6 percent in U.S. mid-afternoon trading, Las Vegas Sands gained more than 4 percent, Wynn Resorts was up 7 percent and MGM Resorts was almost 3 percent higher.

In Hong Kong, Galaxy Entertainment ended the session up 3.3 percent, while SJM Holding rose 4 percent.