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The AGEM index, measuring the stock performance of selected global providers of gaming equipment, witnessed an appreciation of 2.9% on a month-on-month basis in August.
The index appreciated by 54.48 points and closed at 1,929.25 in August, as per the figures provided by the Association of Gaming Equipment Manufacturers (AGEM). The August value is also shown in the accompanying index chart, which records the benchmark’s movement through the years.
Even though there was a rise in the index in August, it was still lower than that of one year ago. The index had depreciated 2.7%, or 54.48 points from last August.
The latest performance reflects mixed results among the companies included in the benchmark. Of the AGEM Index’s 9 constituent companies, 4 recorded share price gains last month. This resulted in 4 positive and 5 negative contributions to the index.
Light & Wonder Leads Monthly Advance
The largest positive contributor to the index was Nasdaq-listed Light & Wonder Inc. Its stock price increased 15.5% in August, adding 40.57 points to the AGEM Index.
The company’s gain provided the strongest individual boost to the benchmark during the month. Light & Wonder’s performance helped lift the overall index despite declines recorded by more than half of its constituent companies.
Japan-listed Konami Group Corp was the second-largest contributor to the monthly advance. Its shares rose 7.1% during August, adding 33.85 points to the AGEM Index.
The gains from Light & Wonder and Konami were the main positive forces behind the benchmark’s monthly increase. Together, the companies contributed a combined 74.42 points to the index.
Aristocrat Creates Largest Drag
The largest drag on the index came from Australia-listed gaming supplier Aristocrat Leisure Ltd. Its shares declined 4.9% in August, resulting in a 24.61-point loss to the AGEM Index.
Aristocrat’s decline partially offset the gains recorded by Light & Wonder and Konami. The mixed performance across the constituent companies shows that the index’s monthly movement was led by selected stocks rather than a broad increase throughout the sector.
Although 4 companies posted share price gains, the 5 negative contributions limited the overall rise. The index still finished August higher than it had been in July, but its year-on-year decline remained in place.
Broader Market Performance
All 3 major U.S. stock indices saw growth in August compared to the previous month. The Nasdaq appreciated by 3.9%, whereas the S&P 500 appreciated 2.6%.
The Dow Jones Industrial Average appreciated by 1.3%. These broader market movements provided a positive backdrop during the same period that the AGEM Index advanced.
However, the gaming equipment benchmark did not match the Nasdaq’s monthly performance. Its 2.9% increase was also moderated by declines among several of its listed suppliers.
How the AGEM Index Is Compiled
AGEM produces the monthly AGEM Index in association with Nevada-based advisory service firm Applied Analysis.
The association represents manufacturers of electronic gaming devices, systems, lottery products, and components for the gaming industry. The index is intended to track the performance of selected companies operating in these areas.
The trade body 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 capitalization.
Source: GGR Asia
