Yesterday, Deutsche Bank AG issued an update on the year-on-year growth outlook for Macau’s gross gaming revenue (GGR), cutting next year’s expectation significantly. While previous predictions had put the city’s 2019 GGR at 11%, it now sits at only 4%.

Deutsche Bank indicated that the update stems from concerns over the VIP gambling segment. It added that Macau could be at the beginning of a downward earnings cycle and has recommended a “sell” on two of the area’s casino operators, SJM Holdings and Galaxy Entertainment Group.

According to analysts, the “current downcycle is similar to the late-2011 to mid-2012 slowdown when GGR growth sharply decelerated to 6 percent year-on-year from 20 percent year-on-year.”

Five of the six Macau operators who are listed on the Hong Kong Stock Exchange immediately saw a substantial increase in their stocks sales. Stock prices dropped 7.42% for MGM China and Wynn Macau saw its price slip by 3.28%. SJM Holdings’ stock price fell 6.44%, while Galaxy’s shrunk by 5.69%.