The index was launched in 1998 with a value of 100. Afterexperiencing the two largest monthly gains in the history of theindex in September and October, the index in November fell nearly81 points or 12% to 586,26 from an all-time high of 667.09.

|

Applied Analysis, the locally based business research andadvisory firm that created and maintains the index attributes thedecline in the AAGI to a dip in valuation that affected primarilypublic gaming companies with assets in Asian gaming markets. Thosecompanies, including AAGI companies Las Vegas Sands and WynnResorts, had seen significant increases in value in recent monthsas the Macau, China gaming market expanded at a robust pace.

|

"During November, fundamentals remained relatively stable whileinvestor profit-taking placed downward pressure on valuations ofgaming operators within the AAGI," according to the latest AAGIreport. As a result, the S&P 500, when computed similar to theAAGI, posted a relatively mild 5% decline. Compared to the sameyear-earlier period, however, the AAGI is up 38.6% while theS&P 50 is up 5.4%.

|

Las Vegas Sands and Wynn Resorts each saw its daily averageshare price fall more than 10% in November. Las Vegas Sands'average share price fell 15.66% to $113.45 from $134.50 while WynnResorts' average price fell 13.83% to $135.69 from $157.46. Thosetwo companies put 87 points of negative pressure on the AAGI. Theother seven companies in the index, including MGM Mirage andHarrah's Entertainment, made only minor moves in eitherdirection.

|

A long-time member of the AAGI, Station Casinos, is going awayafter this month due to its privatization. A new mix of companieswill be introduced with the December Index.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.