Daily Investment Strategy
Daily focus：Galaxy Entertainment（27）
In May, the Macao Gaming Inspection and Coordination Bureau announced that the monthly gross gaming revenue (GGR) rose by 5% year-on-year to MOP 21.19 billion. The cumulative gross gaming revenue for the first five months reached MOP 97.7 billion, up 1.7% year-on-year, with the growth rate continuing to accelerate. This performance exceeded market expectations and marked the highest level of post-pandemic gaming revenue recovery at 82%, sending a positive signal to the market. Additionally, the Capella Hotel, which began trial operations in May and targets the ultra-luxury market, has opened about half of its 93 suites, featuring 16 gaming tables and 6 private gaming rooms. Management believes Capella will complement Galaxy’s event facilities, helping to create a more attractive combined entertainment and gaming experience, which is expected to drive growth in the high-end customer segment in 2025.
OECD significantly downgraded its U.S. economic growth forecast
U.S. stocks recorded broad gains on Tuesday (June 3rd), with the S&P 500 Index rising 0.6% to 5,970.37 points, the Dow Jones Industrial Average climbing 0.5% to 42,519.64 points, and the Nasdaq Composite surging 0.8% to 19,398.96 points. The market benefited from an unexpected rise in April job openings data released by the U.S. Bureau of Labor Statistics, indicating labor market resilience and boosting investor sentiment. However, the OECD significantly downgraded its U.S. economic growth forecast, reducing the 2025 growth rate to 1.6% from the 2.2% projected in March, and further lowering the 2026 forecast to 1.5%. The OECD cited factors such as the Trump administration's tariff policies, increased policy uncertainty, reduced net immigration, and federal workforce reductions as drags on the economic outlook. The organization warned that the global economic outlook is deteriorating, with significant increases in trade barriers, tighter financial conditions, and heightened policy uncertainty posing substantial risks to growth. Despite robust short-term market performance, investors need to closely monitor the long-term impact of tariff policies on economic fundamentals.
Hong Kong Stock Connect recorded a net inflow of HK$3.9bn on Tuesday, of which Meituan (3690) recorded the largest net inflow of HK$1.1bn, followed by China Construction Bank (0939). Tracker Fund Management (2800) recorded the largest net outflow of HK$1.9bn, followed by Xiaomi Group (1810).
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