FT: Greenland-linked stocks surge amid Trump’s takeover threats

A handful of Greenland-linked stocks have surged as US President Donald Trump’s repeated threats to take control of the Danish territory have fueled investor interest in companies tied to the island’s economy.

Shares in Copenhagen-listed Grønlandsbanken, Greenland’s largest bank, have jumped 33 per cent this week as Trump insisted that the United States must “have” Greenland, which is rich in natural resources, Financial Times writes. 

Meanwhile, US-listed Critical Metals, which is exploring southern Greenland for rare metals such as tantalum, niobium, and gallium, has climbed 108 per cent this year. Føroya Banki, another lender with operations in Greenland, is trading at an all-time high, having gained 30 per cent since mid-November.

The sharp price movements have coincided with heightened tensions, as the Trump administration has intensified threats of military action to acquire the island of 57,000 residents. Copenhagen and EU officials have warned that such a move could effectively undermine the post-Second World War Western alliance.

Analysts said the sudden surge in Greenland-exposed shares is difficult to explain and shows hallmarks of a meme stock rally driven by retail investors.

“I would attribute this to retail,” said Mike O’Rourke at Jones Trading. “I can’t say definitively that there aren’t institutional investors in the trade buying based on headlines, but it makes sense that meme traders are excited by certain things we’re seeing, including Greenland.”

Some market participants noted that a potential deal in which the US acquires all or parts of Greenland and invests in the domestic economy could boost local financial firms and other companies.

“The trade does have some logic if the expectation is that a US takeover would invigorate the local economy,” said Arun Sai, a senior multi-asset strategist at Pictet Asset Management.

By Sabina Mammadli