On January 5, 2026, the overall Hong Kong stock gambling sector was under pressure, but there was a clear "ice and fire" situation internally. Stocks such as Melco International Development and MGM China saw significant declines, while Galaxy Entertainment and Sands China displayed stronger resilience, with relatively moderate declines. This differentiation is based on different judgments given by mainstream investment banks on fundamentals, and also points out the focus that investors need to pay attention to in the current market environment.
Stock differentiation under a general market decline
On that day, gambling stocks generally closed lower, with Melco International Development plunging 3.72%, and MGM China falling 3.38%. In contrast, Galaxy Entertainment and Sands China showed stronger resistance to declines, with declines of 2.54% and 1.7% respectively. This difference in stock price trends directly reflects the capital's reassessment and selection of specific companies' fundamentals and prospects in the face of overall industry pressure.
Institutional perspective: Market share and cash flow are key
This differentiation is not accidental, but the result of institutions voting with real money. Goldman Sachs pointed out that in the last quarter, Galaxy Entertainment, MGM China, and Sands China saw an increase in market share. This means that in the fierce market competition, these companies can expand their territory against the trend. CICC then gave its own preference ranking, listing MGM China as the top choice, followed by Sands China and Galaxy Entertainment. They are optimistic about the high-end property projects and robust cash flows of these companies, considering these as crucial "safety cushions" in economic fluctuations.
How investors can seize opportunities in differentiation
Facing the internal differentiation within the sector, a simple "one-size-fits-all" strategy may no longer be applicable. Investors need to more finely identify individual stock opportunities, especially focusing on the following two points:
•The risk resistance of leading companies: Projects with stable cash flows and high-end assets tend to be more defensive during industry adjustments.
•The growth potential of non-gambling businesses: As the industry diversifies, companies with deep layouts and advantages in hotel, entertainment, and exhibition sectors, and other non-gambling areas, may have longer-term growth stories.
To obtain more timely and in-depth industry analysis and data, investors might want to pay more attention to professional information platforms like PASA official website.
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This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
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