The Macao SAR government has order the closure of all commercial and industrial businesses for next week with limited exceptions for essential services. The decision was made after 71 new cases of COVID were reported locally to bring the total number of positive cases in the last outbreak since June 18 at 1,374.
Administration and Justice Secretary Andrew Cheong Weng Chun told a press conference on Saturday that all establishments will shut down from midnight on July 11.
All casinos in Macau will be closed for the week and SJM Holdings Limited’s (OTCPK:SJMHF) hotel-casino Grand Lisboa is on lockdown due to a cluster of positive cases, meaning 500 people are stuck in place.
The latest outbreak is a devastating blow to Macau’s casinos and hopes for recovery in the second half of 2022. There had been some optimism that small steps away from the zero-tolerance COVID policy and relaxed quarantine rules could bring back the international tourism component to the industry for the first time since the start of 2020.
However, the Macau sector saw its worst monthly gross gaming revenue since September 2020, when the GGR fell 62.1% year-on-year in June to 6.54 billion patacas. . The outlook for July GGR is now bleak, with casino closures having a decent chance of extending beyond a week. Even before the recent development, S&P Global Ratings said the best-case scenario for Macau GGR this year is only 20% to 30% of the 2019 level. Share prices in the sector are dismal, although Las Vegas Sands (LVS) outperformed due to its strong performance in Singapore.
Macau Casino Stocks: Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), Las Vegas Sands (LVS), MGM China (OTCPK: MCHVF) (OTCPK: MCHVY). MGM Resorts (MGM), Galaxy Entertainment (OTCPK: GXYEF), SJM Holdings (OTCPK: SJMHF) (OTCPK: SJMHY), Melco Resorts & Entertainment (MLCO), Studio City International (MSC).