Recent AGEM Index Gains Reduced Performance In October

There is a surprising downturn in the latest update from the Association of Gaming Equipment Manufacturers (AGEM) for the AGEM Index. Each month from May to September, the basket of stocks for certain gaming companies saw gains ranging from just above 3 percent to as much as 14.5 percent, but the October results could not keep that momentum going. The AGEM Index slipped 6.8 percent last month from September ‘s numbers, according to the latest figures, even as the gaming industry seems to be on a post-COVID-19 rebound.

Last month, the Index lost a total of 36.05 points, closing at 494.82. While in terms of recovery, the drop is significant, it was only 2.5 percent lower than what was reported in October 2019. This would seem to indicate that gaming operators are still on the right track as they try to get back on track and repair recent losses.

In PlayAGS Inc, which lost 23.7 percent from September and 76.6 percent from October of last year, the largest decrease was seen. International Game Technology, however, took the worst out of it in terms of month-to – month performance, with its stock showing a 26.2 percent loss compared to September. Its loss was 38 percent year on year. With a 4.5 percent dip, Aristocrat Leisure Ltd. also took a hit and forced the Index to lose 15.96 points. The Index cost Konami Corp. 9.8 points as it saw a 10.4 percent decline month-over-month. From September, Transact Technologies added 43 percent, but is still down 42.2 percent year on year.

Overall, of the 13 companies covered, eight moved down from September and five moved up. Of those who saw improvement, only one was able to report improvements in the results of both the previous month and the previous year. Agilsys, which jumped 12.1 percent over the figure for September and 7.5 percent over that of last year’s October. The others saw either improvements month-over-month or improvements year-on-year, or vice versa. Scientific Games Corp. falls into that category, seeing an 8.7 percent slip month-over-month, but a 32.9 percent gain year-on-year.

Not the only bag of stocks to get punched in the gut last month was the AGEM Index. 3.5 percent of the Dow Jones Industrial Average went down and 2.7 percent was lost by the NASDAQ. Moreover, 1.9 percent of its September close was erased by the S&P 500. August had seen respective gains of 7.8 percent, 7.4 percent and 10.8 percent in the three reports, which were then offset by September’s drops of 2.3 percent, 3.9 percent and 4.9 percent and now October’s declines.