AGEM Index Suffers First Decline in 8 Months, Still Up Significantly Year Over Year
August 5, 2021
The AGEM Index reported its first decline in eight months in July 2021 as it fell 70.06 points to 925.32 points.
However, year over year, the Index remains up by 504.46 points (+119.9 per cent).
In the last month, only three of the 13 AGEM Index companies reported increases in stock price. The main contributor to the index was Crane Co. whose 5.3 per cent increase in stock price led to a 6.29-point gain for the Index. Transact Technologies and Galaxy Gaming Inc. also marked stock price increases of 21.3 per cent and 23.3 per cent, respectively. At the end of the period, Transact Technologies added 0.67 points to the overall index while Galaxy Gaming Inc. added 0.49 points.
The monthly decline in the index can be attributed to drops in stock price for most AGEM Index companies. The largest impacts to the index were driven by Scientific Games, which reported a 20.3 per cent decrease in stock price that led to a 25.36-point index decline, and IGT, whose 21.7 per cent decrease in stock price represented a 17.60-point loss for the index.
It should be noted that in July, most companies in the AGEM Index experienced declines in their stock price from the prior month. However, 12 out of the 13 companies reported year-over-year gains on their stock values.
Unlike the stocks that contribute to the AGEM Index, the major indices posted positive percentage changes. The S&P 500, the Dow Jones Industrial Average and NASDAQ grew by 2.3, 1.3 and 1.2 percent, respectively.
Prior to July, the AGEM Index had risen seven months in a row since October 2020 and had reached another new high in June 2021, increasing by 25.50 points to 1,005.20 points, a 2.6 per cent gain from May 2021.
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 13 global gaming suppliers throughout the world. A total of nine suppliers are based in the United States and are listed on the NYSE, Nasdaq, or OTC market, while two trade on the Australian exchange, one on the Tokyo exchange, and another trades on the Taiwan OTC 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 capitalization.