Macau’s casinos and industry-related exchange traded fund are on a hot streak as a week-long national holiday in China sends throngs into southeast Asia’s gambling hub and Beijing considers supporting the Macau economy.
Since the September 29 low, the Market Vectors Gaming ETF (NYSEArca: BJK) has surged 10.8%. Nevertheless, BJK is still down 18.5% year-to-date.
Five major casino operators, including Wynn Macau, MGM China, Sands China, Galaxy Entertainment and SJM, saw shares jump an average 10% over the past two trading sessions, reports Aaron Back for the Wall Street Journal.
The companies make up a significant chunk of BJK’s underlying index. Specifically, BJK holds 7.4% in Sands China, 6.8% in Galaxy Entertainment Group, 4.3% in Wynn resorts, 1.1% in MGM China and 1.4% in SJM.
Supporting the quick turnaround in casino and resorts, tourism in Macau has quickly increased over China’s week-long national holiday. According to the Macau government, for the first four days of the holiday, total arrivals increased 1.9% year-over-year and visits from mainland China were 7.8% higher.
An official from Beijing’s representative office in Macau stated that the central government is considering measures to support Macau’s economy.