GGRAsia – IGT, Konami drag down January’s AGEM Index

IGT, Konami drag down January’s AGEM Index

Feb 06, 2020 Newsdesk Industry Talk, Latest News

The AGEM Index for January decreased by 5.54 points to 540.50 points, down 1.0 percent on the prior month, showed a written statement released on Wednesday. The Association of Gaming Equipment Manufacturers (AGEM) said the index of stock prices for major publicly-listed makers of gaming equipment was 16.6 percent higher than a year earlier.

AGEM produces the monthly AGEM Index, in association with research firm Applied Analysis LLC.

The AGEM said in the release that January’s fall “was driven by stock price declines for 10 of the 13 AGEM Index companies”.

Shares that fell notably last month included International Game Technology Plc, which lost 9.9 percent month-on-month, and took 4.43 points from the index. Shares of Tokyo-listed manufacturer Konami Corp declined 5.5 percent in price and took 4.50 points from the index.

The overall decline in January’s index “was offset by strong gains for two companies AGEM said in its Wednesday announcement.

The stock price for Aristocrat Leisure Ltd climbed 7.5 percent, accounting for a 6.22-point contribution to the AGEM Index, while Agilysys Inc – a technology company that provides software and service to the hospitality industry – experienced a 27.90 percent stock price gain that led to an index contribution of 3.49 points.

Two major stock indices – the Dow Jones Industrial Average and the S&P 500 – experienced sequential monthly declines during January of 1.0 percent and 0.2 percent respectively. “The Nasdaq … experienced a gain of 2.0 percent,” noted the trade body.

Of the 13 gaming-equipment supplier stocks around the world tracked by the AGEM Index, 9 suppliers are based in the U.S., two constituent stocks are listed on the Australian Securities Exchange, one is traded in Tokyo, and another trades on the Taipei Exchange, Taiwan’s over-the-counter market for stocks and bonds.

AGEM represents manufacturers of electronic gaming devices, systems, lotteries and components for the gaming industry. The association began compiling data for the index in January 2005 using a base of 100 points. The stocks that constitute the AGEM Index are weighted by approximate market capitalisation.