Amid slumping revenue in Macau, the Chinese territory that is the world’s largest gambling hub, the Market Vectors Gaming ETF (NYSEArca: BJK) is off more than 15% over the past year.
Macau’s casinos are still suffering from a dearth of high-rollers, who have shied away from making bets as the Chinese economy weakens, the markets experienced a correction and the government cracks down on corruption. Heading into 2016, some industry analysts see opportunity with Macau stocks.
Macau, the only Chinese territory where gambling is legal, is the world’s largest gambling hub. The city is trying to rebuild its market with shops, restaurants, entertainment shows and other non-gaming attractions to bring in more middle-class tourism. For instance, Galaxy Macau is planning a Broadway.
“Macau, the only Chinese territory where gambling is legal, is the world’s largest gambling hub. The city is trying to rebuild its market with shops, restaurants, entertainment shows and other non-gaming attractions to bring in more middle-class tourism. For instance, Galaxy Macau is planning a Broadway,” according to the Las Vegas Review-Journal.
Now, the lone gambling ETF faces some technical challenges. The ETF’s “40-WMA and channel resistance capped choppy spring/summer recovery leading to new lows. Fall 2015 snap back also failed shy of this resistance, leading to fresh weakness. Weekly MACD now rolling over again, and once $29.16 gives way, ETF can fall to $25.63 and below,” according to Reuters.