Macau-related casino stocks fell harder than other consumer discretionary stocks on Monday on new COVID anxiety out of China.
The Zhuhai government reported five confirmed cases of COVID-19 on Sunday to mark the city's first potential outbreak since July. The new cases in Zhuhai consisted of two mild cases and three asymptomatic cases, but is leading to a large-scale round of nucleic acid test testing to be be conducted in the Xiangzhou District.
Meanwhile, the Macau government has now classified some areas in Zhuhai as high-risk areas in response to the potential outbreak. There are also concerns about new COVID restrictions in Shanghai,
The response to the minor outbreak is confirmation that a zero-tolerance COVID policy is still in place in parts of China and is likely to dampen enthusiasm over Q4 traffic to Macau.
Shares of Las Vegas Sands ( NYSE: LVS ) fell 8.52% in early trading on Monday. Melco Resorts & Entertainment ( MLCO ) showed a 9.15% loss. Wynn Resorts ( WYNN ) was off 10.15% and MGM Resorts ( MGM ) shed 3.66% . Studio City International Holdings ( MSC ) peeled off 10.11% .
Read about the Golden Week numbers for Macau.
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Macau casino stocks are sliding because China is sticking with zero-tolerance COVID policy