Macau stock rally seen losing steam

Macau’s gaming stocks have rebounded to trade at two-year highs, tracking the recovery in gross gaming revenue, however analysts warn against over optimism, saying growth may be nearing its peak, at least in the short term. Gross gambling revenue jumped 13 percent in Q1 this year, led by a surprising gain of almost 17 percent in VIP revenue, which returned to positive territory for the first time in 26 months in December.These gains have added further steam to the rally in Macau’s listed gaming stocks. Wynn Macau is up more than 43 percent over the past 52 weeks; Sands China up 25 percent; Galaxy Entertainment up 52 percent; MGM China up about 50 percent; SJM Holdings up 32 percent and Melco Resorts up 43 percent. During the same period, Hong Kong’s Hang Seng Index has gained about 12 percent. Although still far short of their late 2013 peaks, the share price...

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