At 168p, it's time to change our buy recommendation on shares in Macau Property Opportunities Fund (MPO) (212p, 12 December 2013). As a player in the Macau residential market providing luxury rental properties, the company has faced difficulties following a state crackdown on corruption.
IC TIP:
Sell
at
168p
Macau is the only part of China where gambling is legal, but Chinese gamblers have taken fright, and earnings at Macau's six biggest casino operators fell by 40 per cent in the first half of this year. Inevitably, this has undermined the market for luxury rental flats, and valuations have declined as a result.
