Jakarta, CNBC Indonesia – When the Composite Stock Price Index (JCI) sank to leave the psychological level of 6,600, shares of listed coal companies were being sold by investors, and some of them became top losers in today’s trading, Thursday (28/10/2021).
According to data from the Indonesia Stock Exchange (IDX), the JCI fell 1.18% to 6,524,076, with a transaction value of Rp 13.49 trillion and a trading volume of 21.40 billion shares.
Foreign investors from the stock market left Indonesia with a record foreign net selling of Rp 467.60 billion in the regular market. Meanwhile, foreigners recorded a net sale in the negotiating market and cash market of Rp 37.10 billion.
The energy sector index (IDXENERGY) became the sectoral index with the worst performance today, down 2.68%. Then, in the second and third positions, there was the industrial sector index (IDXINDUST) and the raw goods index (IDXBASIC), which were eroded by 2.22% and 1.94%, respectively.
It was noted that only the technology sector index (IDXTECHNO) managed to go green among other indices, which was 0.77%.
Here are 5 coal stocks with the biggest declines today (28/10).
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Indo Tambangraya Megah (ITMG), shares -6.94%, to Rp 22,475, net sell foreign (net sell) Rp 44.00 M
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ABM Investama (ABMM), -6.75%, to Rp 1,450/share, net sell Rp 2.17 B
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United Tractors (UNTR), -6.12%, to IDR 23,000, net sell Rp 75,29 M
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Adaro Energy (ADRO), -5.78%, to IDR 1,630, net sell Rp 33,00 M
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Bumi Resources (BUMI), -5.33%, to Rp 71/share, net sell Rp 196.81 million
According to the data above, the five coal stocks were widely sold by foreign investors in the midst of today’s correction. It was noted that several coal stocks posted the largest net sell values on the stock exchange today.
ITMG shares fell the most, reaching the lower auto rejection (ARB) limit of 6.94%. The weakening of ITMG shares today continued the correction of 4.17% in yesterday’s trading.
Foreign investors made a net sale of Rp 44.0 billion in ITMG shares today, the fifth largest in the stock exchange.
With this, in a week ITMG shares have fallen 7.22% and in a month they are still up 15.11%.
Second, ABMM shares, which also touched ARB 6.75%, were marked by foreign selling of Rp 2.17 billion. In a week ABMM shares fell 7.35%, while in a month rose 20.83%.
Then, the shares of the Astra UNTR Group fell 6.12% today. In the midst of this correction, foreigners are busy selling UNTR shares worth Rp 75.29 billion, the largest on the IDX today.
Shares of the issuer owned by entrepreneur Garibaldi ‘Boy’ Thohir ADRO also fell 5.78% to Rp 1,630/share. Foreigners recorded a net sale of ADRO shares of Rp 33.00 billion, one of the top 10 stocks with the highest net sell today.
Lastly, the shares of the BUMI Bakrie Group which fell 5.33% to Rp 71/share. Foreigners also made a net sale of BUMI’s shares amounting to Rp 198.81 million.
The weakening of coal stocks today seems to be related to investors’ profit-taking, after at least in the past month the price of coal stocks soared. Other than that, Coal futures contract prices fell again.
Yesterday, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 183.15/ton. A fall of 8.88% compared to the previous day’s position.
There are at least two factors that make coal prices plummet. The first is profit taking.
Understandably, the price of this commodity has skyrocketed. In the past month, coal prices still posted an increase of 9.08% point-to-point. Since the end of 2020 (year-to-date), the price has skyrocketed by 177.45%.
In addition, the Chinese government continues to intensify efforts to control coal prices. China’s National Development and Reform Commission (NDRC) is studying effective intervention efforts to control prices.
One of the efforts made was to raid locations suspected of being illegal coal stockpiles. According to the NDRC, there are many such places in major coal-producing regions such as Shaanxi Province and Inner Mongolia.
The NDRC vows to pursue illegal activities for personal gain such as hoarding. Therefore, the government will continue to close the illegal coal storage locations.
China really feels the impact of the surge in coal prices. Around 60% of power plants in the Bamboo Curtain country use coal as a primary energy source. The high price and the depletion of supply have forced a number of regions in China to carry out rotating power cuts.
CNBC INDONESIA RESEARCH TEAM
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