ACTIVE users of mobile games developed by Tencent Holdings Ltd. and NetEase Inc. have surged in China as quarantines keep people at home, underscoring the relative outperformance of their shares amid the coronavirus-driven market tumult.

For Mahjong and Game For Peace, two of Tencent’s most popular titles, daily active users increased 109 percent and 44 percent, respectively, in the two months through February, according to App Store data from mobile app researcher Apptopia Inc.

Other Tencent games including Honor of Kings, Happy Poker, and QQ Speed have also seen usage increases of more than 20 percent over the two-month period.

“Online entertainment and gaming clearly benefit as people are locked down in their homes as supported by active users and time spent increases,” said Dara White and Derek Lin, who help manage US$494 billion of assets at Columbia Threadneedle.

“During this period, these companies should be more defensive.”

The Netease-produced game Werewolves of Miller’s Hollow has also seen its daily active users more than double since December, with growth of 131 percent in China.

Both Tencent and NetEase have outperformed the Hang Seng Index by more than 10 percent this year. And analysts see more gains ahead for stocks tied to in-home entertainment as more people steer clear of the outbreak and look for ways to pass the time at home.

(SD-Agencies)