News of Macau’s share prices slumping is nothing new, but even after 15 months of continuing decline it was impossible not to notice Galaxy Entertainment Group’s (GEG) shares dip below HK$20 yesterday.
If the grim reality of the predicament currently facing casino operators hadn’t previously been realized, crossing back under that HK$20 barrier has come as a real slap in the face.
Not since August 2012 – more than three years ago – have Galaxy shares hovered anywhere near HK$20 and they have now plummeted more than 75 percent from their all-time high of HK$84.50 in January 2014.
What this result tells us is that the opening of Galaxy Phase 2 in May this year has done nothing to halt their slide. And that’s bad news for the rest of Macau’s big six operators who will all open their own brand new properties in Cotai in the next two years – starting with Melco-Crown’s Studio City next month.
Despite predictions of an imminent rebound, Galaxy was one of four Macau operators to experience drops of five percent or more this week alongside Wynn Macau, SJM Holdings and Sands China. So much for that light at the end of the tunnel.
