* IOC to announce results in Buenos Aires on Sept 7
* Olympics-themed stocks outpace Nikkei - BofA ML
By Ayai Tomisawa
TOKYO, Aug 30 As Tokyo's chances of hosting the
2020 Olympic Games increase, investors are looking beyond the
more obvious infrastructure bets to tourism-related companies
and sportswear makers like Mizuno Corp.
Tokyo is leading Istanbul and Madrid in the race to host the
Games, according to betting website GamesBids.com which follows
the Olympics bids. A decision is expected to be made on Sept.7.
An index created by Bank of America Merrill Lynch to track
the movements of 20 Olympics-related, Tokyo-listed shares has
risen 17 percent since it began on June 13, compared with a gain
of 8 percent on the benchmark Nikkei.
Two of the standouts on the list are Tokyo Disney Resort
operator Oriental Land Co Ltd, which has jumped 18
percent over the period, and sportswear maker Mizuno which is up
"Short-term dealers including myself bought these stocks in
advance, but we are always looking for the right time to take
profits," said a dealer at a Japanese securities firm's
proprietary trading desk. "I will probably sell them as soon as
the news is out."
Sports goods maker Asics Corp, advertiser Dentsu
Inc and security firm Secom Co Ltd also have
attracted short-term investors.
Games' windfall hunters have also bet on real estate
companies Mitsui Fudosan Co Ltd and Mitsubishi Estate
Co Ltd, construction firms Kajima Corp and
Taisei Corp, and cement maker Taiheiyo Cement Corp
Land prices in Nagano rose when Japan hosted the Winter
Olympics there in 1998, and investors are gambling on history
repeating itself in Tokyo, Daiwa Securities senior strategist
Eiji Kinouchi said.
"It is possible that land prices in Tokyo will rise by 50
percent," he said.
Kunihiko Sugio, chief investment officer at Invesco Asset
Management, said a winning bid should help drive long-term
growth in Japan as companies would be more likely to increase
their capital expenditure.
"If Tokyo wins, corporate investment should be boosted, so
it will be a big domestic driving factor which will benefit the
Japanese market as a whole," Sugio said.
Japan's bid has been boosted by strong public backing and
enthusiasm for staging the event.
Istanbul's bid was hurt by violent confrontations between
security forces and anti-government protesters earlier this
year, and the imposition of doping bans on dozens of its
athletes. Madrid's efforts are affected by government austerity
programmes amid a punishing recession.
(Editing by Stephen Coates)