GGRAsia – AGEM Index rebounds after declining for three months

AGEM Index rebounds after declining for three months

Jul 09, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

After reporting month-to-month declines for three consecutive months, the AGEM Index reported a gain in June when compared to the previous month.

The composite index ended the month at 185.34, which is up 6.41 points, or 3.6 percent, from the prior period.

Compared to a year ago, the AGEM Index has increased by 26.69 points, a jump of 16.8 percent, said the Association of Gaming Equipment Manufacturers (AGEM) and research firm Applied Analysis LLC, which compile the index.

During June, six of the 17 global gaming equipment manufacturers tracked by the index reported month-to-month gains in stock price, with two up by more than 20 percent – International Game Technology (IGT), up 26.77 percent, and Scientific Games Corp, up 24.25 percent.

IGT confirmed last month that it is exploring a sale option, while Scientific Games announced the appointment of Gavin Isaacs as its new chief executive.

Of the 10 manufacturers that reported declines in stock price, two were down by more than 10 percent. GTech SpA dropped by 11.59 percent from the previous month and Wells-Gardner Electronics Corp posted a decline of 18.82 percent.

Galaxy Gaming Inc, a U.S.–based supplier of casino table games and electronic jackpot bonus systems, was added to the index in June.

The AGEM Index now comprises 17 global gaming suppliers throughout the world. A total of 12 suppliers are based and listed in the United States, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one trades on the Milan exchange and another trades on the Taiwan exchange.

The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalisation. It is based on a 100-point value as of January 2005.