Philippine stocks latest casualty of China crackdown

Casino operators in the Philippines have emerged as the latest companies to see their shares plummet over the weekend as investors reacted to China’s vow to crackdown on foreign casinos luring Chinese gamblers abroad.
The biggest loser was Bloomberry Resorts Corp., which owns Solaire Resort and Casino.The company’s share value fell 11.6 percent from Friday to close at P10.32 ($0.23) on Monday.
Melco Crown (Philippines) Resorts Corp. shares fell from 10.8 ($0.24) to 9.7 ($0.22), while shares in SM Group’s Premium Leisure Corp. dropped 8.24% to P1.56 ($0.04) per share.
Matt Hurst, executive vice-president of Casino Operations at Tiger Resort, which is not listed, told local media that China’s crackdown is largely aimed at Macau and that the market in the Philippines still has long term potential.
“We do not believe it will have a negative impact on legitimate tourism and travel to the Philippines from China,” Hurst said in an e-mail yesterday to Business World Online.
“We are confident in the long term potential of the market here, and grateful for the support of PAGCOR and their promotion and development of Entertainment City in Manila.”