With two analysts from major financial institutions initiating coverage of Sands China Ltd. (SCL), the initial public offering made last month by Las Vegas Sands Corp., with "buy" ratings, the share price climbed 6.3 percent in early trading Monday.
This was the highest price reached by Sands China shares that have been trading on the Hong Kong Exchange for the past month.
The two companies initiating coverage of the stock were Citygroup and UBS.
Citigroup analyst Anil Daswani issued a report saying, "Overall, we see SCL as having the most scope for expansion within the ‘managed growth’ constraints set by the Chinese government."
At closing, the price of SCL had dropped to HK$9.94, indicating a rise of 5.1 percent in Monday trading.
Surprisingly, Daswani issued a "sell" rating on Wynn Macau, the shares created by the IPO of Wynn Resorts Ltd. His reasons involved Wynn Macau’s lack of development on Macau’s Cotai Strip – an area that will be responsible for much of the growth foreseen by Las Vegas Sands – and its focus on VIP gamblers.
In U.S. trading early Monday, WYNN shares were up more than 3 percent at $61.30 while LVS shares had increased 5.69 percent to $15.79 each.
Question? Comment? E-mail me at: Ray Poirier