The index was launched in 1998 with a value of 100. After experiencing the two largest monthly gains in the history of the index in September and October, the index in November fell nearly 81 points or 12% to 586,26 from an all-time high of 667.09.
Applied Analysis, the locally based business research and advisory firm that created and maintains the index attributes the decline in the AAGI to a dip in valuation that affected primarily public gaming companies with assets in Asian gaming markets. Those companies, including AAGI companies Las Vegas Sands and Wynn Resorts, had seen significant increases in value in recent months as the Macau, China gaming market expanded at a robust pace.
"During November, fundamentals remained relatively stable while investor profit-taking placed downward pressure on valuations of gaming operators within the AAGI," according to the latest AAGI report. As a result, the S&P 500, when computed similar to the AAGI, posted a relatively mild 5% decline. Compared to the same year-earlier period, however, the AAGI is up 38.6% while the S&P 50 is up 5.4%.
Las Vegas Sands and Wynn Resorts each saw its daily average share price fall more than 10% in November. Las Vegas Sands' average share price fell 15.66% to $113.45 from $134.50 while Wynn Resorts' average price fell 13.83% to $135.69 from $157.46. Those two companies put 87 points of negative pressure on the AAGI. The other seven companies in the index, including MGM Mirage and Harrah's Entertainment, made only minor moves in either direction.
A long-time member of the AAGI, Station Casinos, is going away after this month due to its privatization. A new mix of companies will be introduced with the December Index.
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