Macau Casino Revenues Surge 65%; HK Stocks Up

Mayank Mehta
02 Feb, 2010
New York City

Stocks in Hong Kong and Shanghai diverged. Hong Kong retail sales increased 16% in December and home sales surged in January. Gross casino revenues in Macau soared 65% in January. Securities regulator approves rights issue of China Merchants Bank.

[R]9:00 PM Hong Kong, China – Stocks in Hong Kong and Shanghai diverged. Hong Kong retail sales increased 16% in December and home sales surged in January. Gross casino revenues in Macau soared 65% in January. Securities regulator approves China Merchants Bank's rights issue.[/R]

Hong Kong stocks gained on a rise in retail sales and a surge in casino spending and home sales. However, stocks in Shanghai were subdued on the worries that the government will soon tighten lending and curb new lending to acquire real estate.

Casinos and property developers gained higher in Hong Kong trading after retail sales increased in December and gross casino revenues soared in Macau in January. Banks and infrastructure development related companies declined on the worries that China may tighten lending to slow economic growth.

Hong Kong retail sales in December increased 16% from a year ago to HK$29.4 billion as tourist arrivals in the city increased and domestic unemployment decreased.

Hang Seng index in Hong Kong increased 28.43 or 0.14% to 20,272.18, and CSI 300 index in China lower 6.52 or 0.21% to 3,146.19.

Hong Kong’s land registry said home sales in the city surged 124% in January to HK$36.2 billion compared to a year ago.

Macau casino revenues in January surged 65% to 14 billion patacas or $1.75 billion according to the Portuguese news agency Lusa, ahead of the record revenues in October of 12.6 billion patacas.

Shanghai Movers

Anhui Conch Cement Company Limited the cement manufacturer decreased 0.5% to 40.03 yuan.

China Eastern dropped 5.1% to 8.51 yuan after the recently issued 1.4 billion shares to acquire Shanghai Airlines Co. began trading on the exchange.

China Erzhong Group Deyang Heavy Industries Co. on its first day of trading declined 4.1% from its offer price of 8.5 yuan to 8.15 yuan.

China Merchants Bank Co., Ltd advanced 2.2% to 15.63 yuan after the lender said Monday that China's securities regulator approved its application for a rights issue, according to Dow Jones Chinese Financial Wire report. In August the bank had planned to raise as much as Rmb 22 billion or $3.2 billion in a rights offering of 2.5 shares for every 10 shares held.

Jiangxi Copper Company Limited added 2.3% to 33.62 yuan.

PetroChina Company Limited fell 0.08% to 12.82 yuan and the oil and gas producer has a 37.5% stake in a venture developing Iraq's Halfaya oil field over 20 years, as reported on Bloomberg.

HK Movers

Property developers gained after Hong Kong home sales increased in January. New World increased 1.1% to HK%13.44, Cheung Kong (Holdings) Lt added 0.6% to HK$94.35 and Sun Hung Kai Properties Ltd gained 0.8% to HK$102.30.

Sa Sa International Holdings Limited the cosmetics retailer added 2.1% to HK$5.17.

SJM Holdings Limited rose 5.2% to HK$4.03, Sands China Ltd added 3.9% to HK$11.50 and Wynn Macau Ltd increased 2.2% to JK$9.62. A surge in Macau casino revenues in January lifted stocks in the sector.