Analysts bullish on Macau gaming industry

Gaming analysts continue to be bullish about Macau’s gaming industry after the local casino gross gaming revenues reached MOP16.3 billion last month, the second highest monthly value ever, representing a yearly increase of 70.4 percent, according to official data. “These results are better than expected and confirms our belief that Macau gaming revenue will continue to be strong throughout 2010, despite a modest cooling of the Chinese economy,” David Katz and Stephen Shulstein, analysts at Jefferies & Co. in New York, said in a research note, quoted by Bloomberg. CLSA analysts Huei Suen Ng and Aaron Fischer said they expect gambling revenue in Macau to increase 34 percent in the second half from a year earlier, slowing from the first half’s 67 percent growth rate, according to The Wall Street Journal. Nomura Holdings analyst Charlene Liu said in a report last week that the strong casino gross gaming revenue figures for July were significant because they would help dismiss some of the concerns regarding the potential negative impact of the property cooling measures announced by China in mid-April.