Led by BUMI, Coal Stocks 'Rage' Again This Morning!

Jakarta, CNBC Indonesia - Shares of issuers of coal soared in early trading  after tending to be hit by profit taking throughout last week.

The following is the increase in coal stocks, based on data from the Indonesia Stock Exchange (IDX), at 09.11 WIB.

  1. Bumi Resources (BUMI), shares +5.41%, to Rp 78/share

  2. Indo Tambangraya Megah (ITMG), +4.31%, to Rp 24,825/share

    ABM Investama (ABMM), +4.23%, to Rp 1,600/share

    Bukit Asam (PTBA), +3.37%, to Rp 2,760/share

    Delta Dunia Makmur (DOID), +3.36%, to Rp 308/share

    United Tractors (UNTR), +3.06%, to Rp 24,425/share

    Adaro Energy (ADRO), +2.88%, to Rp 1,785/share

    Harum Energy (HRUM), +2.64%, to Rp 7,775/share

    Alfa Energi Investama (FIRE), +2.50%, to Rp 615/share

    Mitrabara Adiperdana (MBAP), +1.65%, to IDR 3,700/share

    Indika Energy (INDY), +1.25%, to Rp 2,020/share

    Perdana Karya Perkasa (PKPK), +0.75%, to Rp 135/share

    Natural Resource Indonesia (KKGI), +0.65%, to Rp 310/share

    Bayan Resources (BYAN), +0.49%, to Rp 25,625/share

    Golden Energy Mines (GEMS), +0.25%, to Rp 4,090/share

    According to the data above, the shares of listed companies in the Bakrie BUMI Group led the gains by rising 5.41% to Rp 78/share, stopping the trend of weakening for 5 consecutive days.

    In a week, BUMI's stock still fell 10.34%, while in a month it shot up 39.29%.

    Second, ITMG shares rose 4.31% to Rp 24,825/share. With this, ITMG shares managed to break the weakness that occurred for 4 consecutive days. In a week ITMG shares fell 3.85%, while in a month rose 35.50%.

    Third, ABMM shares rose 4.23% to Rp 1,600/share, after sinking in the last 2 days. In a week ABMM shares still rose 5.67%, while in a month jumped 32.08%.

    Under ABMM, there are shares of state-owned company PTBA which rose 3.37% to the position of Rp 2,760/share, after sinking for 3 consecutive days. In a week PTBA shares fell 2.12%, but in a month increased by 13.06%.

    Last weekend, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 191/ton. Up 4.97% compared to the previous day's close of trading.

    However, on a weekly basis, coal prices fell 20.86%. This is the worst weekly correction in at least 10 years.

    Profit-taking ( profit taking ) there will always overshadow the price of coal. Although this week was 'deeply wounded', coal prices still posted a 4.51% increase in the past month.

    Since the end of 2020 ( year-to-date ), coal prices have skyrocketed by 133.64%. It seems that there is no commodity whose price has gone up as high as coal.

    Therefore, there will definitely come a time when investors are eager to cash out the profits that are already so high. This mass selling ( sell-off ) caused the price of coal to be corrected.

    In addition, news from China has also become a negative sentiment for coal. The Chinese government is considering intervening in sharply rising commodity prices, including coal.

    China's National Development and Reform Commission (NDRC) on Tuesday said it was studying steps that could be taken to intervene in coal prices. They will make every effort to get the price back into a reasonable range.

    Read:Xi Jinping's Ultimate Aid is Powerful! Coal Price Falls...

    One of them is to boost production, which was hampered by On October 18, 2021, China's coal production was recorded at 11.6 million tons, up 8.6% compared to the position at the end of last month. NDRC targets production of 12 million tons per day so that coal prices can fall.

    According to Refinitiv's calculations, if the production level in October 2021 is maintained until the end of the year, then in the fourth quarter of 2021 China's coal production will be 1.07 billion tons. This brings production throughout 2021 to 3.99 billion tons, up 4% compared to 2020 as well as being a record high.

    Coal is a strategic commodity for China, because about 60% of the power plants there use coal power. The high price of coal makes electricity companies dizzy because on the other hand the demand is also very high. Of course , it is natural that President Xi Jinping's government has an interest in reducing coal prices.