The Index's decrease in May was due in large part to the largestcompany in the Index, Las Vegas Sands Corp., which saw its averagedaily share price fall more than 10% in May. The dip followedfirst-quarter results that showed lower margins for Sands in Macaudue to new competition from MGM Mirage in that market, according toLas Vegas-based Applied Analysis, which created the Index.

The average daily share price is one of the main factors thataffects the Index, and its impact is weighted based on the marketcapitalizations of the companies in the Index. In addition toSands, which has the largest market cap, those companies includeMGM Mirage, Harrah's, Boyd Gaming, Station Casinos and threemanufacturers of gaming machines and equipment, International GameTechnology, WMS Industries and Bally Technologies.

Applied Analysis principal Brian Gordon says that while theaverage daily share price of Sands, MGM Mirage, Harrah's and BoydGaming all decreased during the month, valuations began risingagain toward the end of the month. If those gains are maintained,the results from June may reverse the course that has seen theIndex lose 10% of its value since the end of January.