AGEM Index Ends Streak of Record Growth With First Decline Since July
The Index had set a new record high for the last three months in a row, culminating in a benchmark of 1,077.92 points in October 2021. However, in November, it fell by 117.72 points to 960.19, a 10.9 per cent decline.
Still, year over year, the Index is up 328.47 points for a significant annual growth rate of 52 per cent, representing a strrong rebound from the pandemic-affected difficulties of 2020.
The Index is at its highest levels in history, tripling in value since the onset of the pandemic in March 2020.
AGEM notes that all AGEM Index companies reported decreases in stock price over the period, and that the recent decline in the overall index can be attributed to a number of factors, including rising concerns of the omicron COVID-19 variant which trigged stock sell-offs, poor quarterly earnings performances, instability in the U.S. dollar exchange rates, and rising inflation.
Of the AGEM Index companies, Aristocrat suffered the largest decline, with a 5.5 per cent drop in overall stock price resulting in a minus 48.00-point contribution to the AGEM Index. Meanwhile, Scientific Games’ 20.1 per cent decline in stock price resulted in a 27.11-point drop for the overall index.
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.