Changes in Hong Kong stocks | Gaming stocks fall across the board, Citi maintains a 5% decline in gambling sales in October and predicts that the decline in Xiaomai's profit estimates may exceed expectations

The Zhitong Finance App learned that gaming stocks fell across the board. As of press release, Macau International Development (00200) fell 4.74% to HK$2.41; Sands China (01928) fell 4.49% to HK$10.86; Galaxy Entertainment (00027) fell 4.24% to HK$31.6; and Aobo Holdings (00880) fell 3.72% to HK$1.165.

Citi estimates that Macau's gaming revenue for the first 19 days of October is about MOP 14.1 billion, and the average daily gaming revenue from October 12 to 19 is about MOP 613 million, which is 16% lower than the average daily average of about MOP 729 million on Sunday October 5. The bank maintained its October gaming revenue forecast of MOP 23 billion, which meant a 5% year-on-year decline.

Xiaomo, on the other hand, said that cheap valuations alone are not enough. Market expectations are still likely to be further lowered in line with the bank's estimates. The drop in earnings should come as no surprise, as most people have already anticipated a cut, but according to recent trends, the reduction seems to be significantly greater than most expectations. Coupled with weak management reviews for the third quarter, it may further drag down sentiment. In the absence of a clear revaluation catalyst, the bank maintained a cautious and selective approach to the sector.