Las Vegas Sands Leads Macau Stock Rally as Border Talk Gains Momentum

November 23, 2021 Earnings & Filings Industry Updates

Las Vegas Sands (NYSE:LVS) is leading a Monday resurgence in Macau gaming stocks, as some analysts are turning slightly bullish on the beaten-down group. That’s amid speculation the China/Hong Kong border could soon reopen.

Should that border reopen, it could pave the way for thousands of tourists to enter Hong Kong and potentially move travel onward to Macau, boosting the number of daily arrivals in the gaming center. While the number of people initially allowed to cross the border will be just a few hundred daily, that figure is expected to grow into the thousands. More importantly, residents will be able to enter the mainland from Hong Kong without being subjected to coronavirus quarantine protocols.

That policy is expected to go into effect in early December — two weeks sooner than expected — reports The South China Morning Post.

The news, coupled with some slightly encouraging commentary from Wall Street analysts, has shares of Las Vegas Sands higher by six percent in midday trading. That puts the owner of five Macau integrated resorts on pace for one of its best days in the current quarter.

Outlook Improves for Macau Stocks
Amid heightened regulatory fears and slow-moving action on border reopenings — the latter of which is fostered by China’s zero-tolerance policy on COVID-19 – 2021 has been a miserable for Macau stocks. Analysts and investors are largely displaying preferences for casino operators with Las Vegas or domestic regional exposure over Asia-Pacific fare.