Macau gaming stocks tipped to remain uncompelling

2014/10/27

From：Macau Business

Investors will probably be cautious about buying shares in Macau casino operators for the next six to 12 months, Wells Fargo Securities says.

The stockbroker says signs of recovery in the city’s gaming market could take longer than expected to appear.

It says in a note that investors think “stocks are not at ‘scorched earth’ levels at which they’d be prepared to buy, nor do they think they are compelling absolute shorts”.

The main causes of pessimism about gaming stocks are the mainland’s economic indicators and its campaign against corruption and lavish spending, which are likely to last longer than first thought, Wells Fargo says.

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