KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Earnings Boost on the Horizon for Las Vegas Strip Casino Operators Amid Tropicana and Mirage Closures
The Las Vegas Strip is poised for a significant shift in its competitive landscape with the imminent closures of Tropicana Las Vegas and The Mirage Hotel & Casino, resulting in a 4.9% reduction in total room supply. This contraction offers a unique near-term earnings catalyst for major casino operators, positioning them for potential revenue growth.
Key Highlights:
- MGM Resorts International Dominance: With nearly 37,000 rooms across 13 properties, MGM Resorts International (NYSE) stands to gain significantly from the reduction in room supply. Notable properties include Luxor, Aria, and Bellagio.
- Caesars Entertainment and Wynn Resorts: Other major players such as Caesars Entertainment and Wynn Resorts (NASDAQ) are also expected to benefit from the increased demand.
- Analyst Insights: CBRE Equity Research highlights The Mirage's closure as a major impact, citing its substantial contribution of ~$596M in revenue and $169M in EBITDAR in FY23.
- Market Sentiment and Performance: Despite low investor sentiment due to inflation and macroeconomic uncertainty, the Strip's fundamental performance remains robust, supported by high consumer spending and a strong event calendar.
- Forward Estimates: Analysts believe current estimates may be overly conservative, suggesting a potential lift in investor sentiment and earnings as the year progresses.
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