Macau casino stocks are lower with Shanghai COVID cases spiking

April 7, 2022 Macau Earnings & Filings

Soaring COVID cases in Shanghai has put another pall over the Macau casino sector.

Chinese authorities extended a lockdown in Shanghai to cover all 26 million residents in a development that is seen as a test of how far the zero-tolerance COVID policy can go in the nation.

“Shanghai’s epidemic prevention and control is at the most difficult and most critical stage,” warned a Chinese health official.

A high percentage of the cases in Shanghai over the last few days were reported as asymptomatic.

COVID cases are also elevated in Hong Kong, which will impact the timeline of when travel restrictions will be lifted to Macau.

In premarket action on Wednesday, Las Vegas Sands (NYSE:LVS) fell 1.56%, Wynn Resorts (NASDAQ:WYNN) was down 1.86%, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) shed 2.49% and MGM Resorts (NYSE:MGM) showed a 1.22% loss.