Corporate News

By Keith Richard D. Mariano, Reporter

Shares in company behind Trump Tower Manila soar amid PSEi decline

Posted on November 10, 2016

CENTURY PROPERTIES Group, Inc. towered over peers on the Philippine Stock Exchange (PSE) on Wednesday for the same reason that dragged the main index to a six-month trough: the election of Republican billionaire Donald J. Trump to the White House.

Shares in the company soared 12 centavos or 20% to 72 centavos apiece, a price last reached on Aug. 27, 2015. It emerged as the top gainer in a session that witnessed the benchmark PSE index plunge 188.76 points or 2.58% to 7,119.04.

The stock was unchanged at 60 centavos when trading opened on Wednesday. It would later ascend to reach as high as 74 centavos and become the 18th most actively traded stock on the local bourse.

Century Properties, which counts Trump Tower Manila as one of its on-going projects, bucked a downturn that prevailed on the PSE and most other markets in Asia, as Mr. Trump led Democrat Hillary Rodham Clinton in the presidential race in the United States. The Republican’s victory was announced after trading at the PSE had ended.

“Investors are speculating that Trump’s victory could be beneficial to CPG, given previous partnerships between the two,” Jonathan J. Latuja, research analyst at Unicapital Securities, Inc., said in a mobile phone message.

There was “nothing fundamental” behind the surge in the stock’s price, Ralph Christian G. Bodollo, research analyst at RCBC Securities, Inc., noted in a separate mobile phone message.

“I think it’s just a positive sentiment toward CPG since the company has a branding partnership with the Trump group for a project in Makati. CPG was brought to the spotlight with D. Trump’s win amid the market chaos,” Mr. Bodollo said.

The upscale property developer’s portfolio includes a 57-storey condominium bearing the Trump brand. The P6-bilion residential building called Trump Tower is being developed within the master-planned Century City in Makati.

The Trump Tower was conceived out of meetings with The Trump Organization Executive Vice-President for Development and Acquisitions Ivanka Trump a few years ago in New York, the company had revealed when it launched the project in 2011.

Mr. Trump serves as chairman and president of The Trump Organization. The businessman has been criticized for racist and misogynist remarks while campaigning for the US presidency. In one instance, he identified the Philippines among the “terrorist nations.”

Aside from its partnership with The Trump Organization, Century Properties jumped on the equities market on the appointment of a top executive as special envoy to the US, Unicapital Securities’ Mr. Latuja said.

President Rodrigo R. Duterte has designated Century Properties Chairman and Chief Executive Officer Jose E.B. Antonio as the Philippines’ special envoy for trade, investment and economic affairs to the US, effective Oct. 28.

“Mr. Antonio’s appointment as the special envoy to the US may have boosted the name, too,” RCBC Securities’ Mr. Bodollo said.