Investors are nervous, Coal Stocks are being abandoned?

Jakarta, CNBC Indonesia – Shares of listed coal mining companies closed sinking into the red zone at the close of trading Thursday (21/10/2021), in the midst of profit-taking that is still happening in coal commodities lately.

According to data from the Indonesia Stock Exchange (IDX), the Jakarta Composite Index (JCI) fell 0.35% to 6,632,972, with a transaction value of IDR 20.20 trillion and trading volume of 28.80 billion shares.

Foreign investors from the stock market entered the Indonesian stock exchange with a record foreign net purchase of Rp 582.93 billion in the regular market. Meanwhile, foreigners recorded a net sale in the negotiating market and cash market of Rp 55.54 billion.

The following is the weakening of coal stocks on Thursday (21/10).

  1. Indika Energy (INDY), shares -6.96%, to Rp 2,140/share

  2. Alfa Energi Investama (FIRE), -6.52%, to Rp 645/share

  3. Delta Dunia Makmur (DOID), -6.21%, to Rp 302/share

  4. Bumi Resources (BUMI), -6.02%, to Rp 78/share

  5. Adaro Energy (ADRO), -5.39%, to Rp 1,755/share

  6. Bayan Resources (BYAN), -5.14%, to Rp 26,275/share

  7. Harum Energy (HRUM), -5.12%, to Rp 7,875/share

  8. Indo Tambangraya Megah (ITMG), -4.72%, to Rp 24,225/share

  9. United Tractors (UNTR), -3.70%, to Rp 24,700/share

  10. Bukit Asam (PTBA), -3.55%, to Rp 2,720/share

  11. ABM Investama (ABMM), -3.10%, to Rp 1,565/share

  12. Mitrabara Adiperdana (MBAP), -2.88%, to IDR 3,710/share

  13. Natural Resource Indonesia (KKGI), -1.27%, to Rp 312/share

  14. Golden Energy Mines (GEMS), -1.20%, to IDR 4,120/share

INDY’s shares fell the most, reaching the lower auto rejection limit (ARB) of 6.96% to Rp 2,140/share. In a week this stock fell 6.55%, while in a month jumped 56.20%.

Second, FIRE shares also penetrated ARB 6.52% to Rp 645/share. In a week, FIRE shares fell 6.52%, while in a month rose 29.00%.

Below FIRE shares, there is DOID shares which fell 6.21% to Rp 302/share, continuing the correction in the last 2 days. In a week DOID shares fell 10.65%, while in a month rose 4.14%.

Fourth, there is BUMI shares which fell 6.02%, after being corrected for 4 consecutive days.

Coal prices are down again. Not just down, but melted down.

Yesterday, the price of coal on the ICE Newcastle (Australia) market was at US$ 181.95/ton. Loss of 14.62% compared to the day before. This is the deepest daily correction since October 6, 2021.

This correction made the price of the black stone weaken for seven consecutive days. In those seven days, the price fell 30.02%.

profit taking (profit taking) seems to still be whacking the price of coal. Understandably, the price has gone up very high before.

In the last month, coal prices still recorded an increase of 2.04% point-to-point. Since the end of 2020 (year-to-date), the price is still up 122.57%.

So, naturally investors will be tempted by how that big. There will definitely come a time when investors are busy cashing out profits, and it seems that has been the case for the past week.

In addition, the market is also responding to China’s policy plan that will try to suppress coal prices. The trick is to boost production and speed up imports to foster stockpiles to be sufficient for winter needs.

China’s National Development and Reform Commission (NDRC) is studying various intervention measures in order to lower coal prices. President Xi Jinping’s administration is committed to making efforts to bring coal prices down to more reasonable levels.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

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