Macao Casino Stocks Face a Reckoning After Searing Rally

Expectations of a revival of Macao's casino operators risk running ahead of reality with the timeline of a meaningful return in Chinese mainland tourists uncertain. Photo: Bloomberg

(Bloomberg) — A sizzling rally in Macao casino operators appears to have hit a wall, as investors await signs of business recovery and shares approach technical hurdles.

A Bloomberg gauge tracking six operators including Wynn Macau Ltd. and MGM China Holdings Ltd. has jumped more than 60% in the past three weeks, compared with a 10% gain in the Hang Seng Index. The near-vertical move has come as an array of positive news — including the new license approval and China’s faster-than-expected Covid reopening — ignited hopes of a revival in the gambling hub.