Asia's Trump Tower Builders Are Getting an Extra Boostby and
Southeast Asian developers have ties with president-elect
Investors betting they will have deal access: Phillip Capital
Some investors are speculating the Trump name carries a premium for certain Southeast Asian developers.
A trio of stocks with direct links to the real-estate magnate turned U.S. president-elect have been getting an extra boost since his victory shocked global markets, although analysts say the gains are likely to be short-lived.
Century Properties Group Inc., a Philippine developer that’s building a Trump tower near Manila, and Indonesia’s PT MNC Investama, part of the MNC Group that has agreements with Trump Hotel Collection to develop resorts in Bali and West Java, jumped at least 15 percent on Wednesday before retreating Thursday. Malaysia’s TA Global Bhd., which is building a Trump tower and hotel in Vancouver with Canada’s Holborn Group, surged 13 percent from Tuesday.
“To a certain extent, it’s fundamentally driven as it’s about the relationship these companies have with Donald Trump’s group of companies that may make it easier for them to do business,” said Ang Kok Heng, chief investment officer at Phillip Capital Management Bhd. in Kuala Lumpur. “Investors are betting these companies would have more access to business deals in the future,” he said, adding that the gains were likely to be short term.
Century Properties Chairman and Chief Executive Jose Antonio, who was appointed by President Rodrigo Duterte as Philippine special envoy to the U.S. last week, said in 2012 that he was in talks with the Trump group to build more projects in Manila. The developer pared its surge on Thursday, closing down 13 percent after a 20 percent jump on Wednesday.
The surge “was a speculative play and investors are taking profit now in the absence of solid fundamentals to back it up,” said Richard Laneda, an analyst at COL Financial Group in Manila.
The three companies weren’t the only Asian stocks to get a Trump-induced boost. Wisesoft Co., a Chinese software and heavy equipment provider, jumped 6.4 percent on Wednesday. The company’s local-language name “Chuan Da Zhi Sheng” sounds like “Trump Wins Big” to Chinese speakers.
TA Global rose 2 percent on Thursday, building on an 11 percent jump on Wednesday. MNC Investama, controlled by Harry Tanoesoedibjo who holds the Indonesian rights to Trump’s Miss Universe pageant, advanced 16 percent on Wednesday before paring that by 3.1 percent on Thursday.
“I think the gains were driven purely by sentiment from Trump’s victory, not because of any shift in the fundamentals,” said Agus Yanuar, president director at PT Samuel Aset Manajemen in Jakarta. “People just see the close ties between Harry Tanoe to Donald Trump.”