Gaming stocks plunge after Resorts World Manila attack

Police patrol outside a hotel at the Resorts World Manila complex, early Friday, June 2, 2017, in Manila, Philippines. Gunshots and explosions rang out early Friday at a mall, casino and hotel complex near Manila’s international airport in the Philippine capital, sparking a security alarm amid an ongoing Muslim militant siege in the country’s south. AP

Big casino operators took a hit at the Philippine Stock Exchange Friday morning as details emerged on the dawn attack in the Resorts World Manila gaming and hotel complex beside the Ninoy Aquino International Airport’s Terminal 3.

Resorts World Manila operator Travellers International Hotel Group Inc. lost 8.8 percent to P3.10 per share by the noontime recess.

The effects were also felt by major casino operators in the nearby Entertainment City Complex along Manila Bay.

Melco Resorts and Entertainment (Philippines) Corp., which operates the City of Dreams Manila, was down 3.27 percent while Bloomberry Resorts Corp., the operator of Solaire Resort & Casino, slipped lower by 1.02 percent.

The fact that trading volume was relatively low for each of those companies, and the benchmark Philippine Stock Exchange index had closed 0.55 percent higher at the noontime break, meant the drop was likely a knee-jerk reaction by some investors.

“We’re hoping it’s an isolated case,” Eduardo Francisco, president of BDO Capital & Investment Corp., said in an interview Friday.

According to reports, a lone gunman fired shots in the air and set tables on fire at around 12 midnight on June 2, 2017.  Some of the guests had died of suffocation, and scores were being treated in nearby hospitals, reports showed.

READ: At least 37 dead in Resorts World Manila attack—police

The Philippine National Police said the gunman had died after setting himself on fire hours later in one of the hotel rooms, adding it was likely a robbery attempt and “not an act of terror.”  Authorities denied the gunman had links to the Islamic State.

READ: Resorts World gunman burned self to death–PNP

“This is a sad day for Resorts World Manila,” Travellers said in a statement Friday.

“As of this time, the Company has extended medical assistance to the 54 individuals who were taken to nearby hospitals. Our security team and Bureau of Fire Protection are currently conducting search and rescue operations on all floors,” it added.

The company dismissed the attack as a “cowardly act” and asked for prayers amid the tragedy.

“We ask for your understanding during this difficult time. This cowardly act of a deranged mind will not defeat the spirit on which Resorts World Manila was built. With your prayers, we will overcome this tragedy,” Travellers said.