CP Prima & The End of Plasma Shrimp Farming
Shares of CP Prima rallied 58% to Rp79 as some investors bet on further improvement in the bottom line following Rp60 billion profit booked in the first half of 2016. The stock, however, retreated to Rp56 upon receiving information surrounding huge third quarter loss of the integrated feed-to-shrimp farming. What’s going on?
Jawa-1 Power Project: Finale?
State-owned electricity provider PT Perusahaan Listrik Negara (PLN) is scheduled to sign power purchase agreement (PPA) with a consortium of Pertamina, Marubeni Corp, and Sojitz for the development of Jawa-1 combined cycle power plant (1600 MW), one of IPPs under the signature 35,000 MW program.
ONWJ Block & Bakrie’s Future
Participating interest in the Offshore North West Java (ONWJ) oil and gas block is one of the largest assets of Energi Mega Persada (ENRG), a company owned by Bakrie Family. It is third behind Malacca Strait and Kangean blocks. ENRG holds indirectly 36.72% interest in ONWJ, while state-owned oil and gas company Pertamina controls 58.28%.
Plantations Journal
The benchmark February 2017 contracts of crude palm oil (CPO) advanced RM61 to RM3137 per ton on the Bursa Malaysia Derivatives Monday (Dec 5) to tracking soybean oil. Weak harvest of FFBs and CPO production in November might have also contributed to the rally.
Luhut Sells Toba Bara Sejahtra
Coal producer Toba Bara Sejahtra (TOBA) informed market authorities Monday that it has on December 5th received a letter from Highland Strategic Holding Pte Ltd, a company based in Singapore, regarding its plan to acquire majority shareholding in TOBA, which is controlled by the family of Luhut Binsar Pandjaitan, coordinating minister for maritime affairs.
Metal Prices & Mining Stocks
Aneka Tambang (ANTM), Vale Indonesia (INCO), and Timah (TINS) are among top gainers year-to-date with over 100% gain respectively even though their financials were severely hit by falling prices of nickel and tins. Investors were mostly betting on improvement in these commodities next year.
Coal Journal
The government has set reference price of Indonesian thermal coal (6322 Kcal/Kg) for December 2016 at US$101.69 per ton, significantly higher than the last quoted OTC price of the commodity (US$87 per ton). This is also the highest reference price since June 2012.
Revisiting FKS Multi Agro
FKS Multi Agro (FISH) is not an interesting stock due to its low trading liquidity. Still, this is one of the largest agriculture commodities traders in the country with sales revenue of US$658.5 million in the first nine months of 2016.
Apexindo: From Bad to Worse
Shares of oil and gas supporting services company PT Apexindo Pratama Duta (APEX) Tbk inched up 0.5% only Thursday, while peer Elnusa (ELSA) jumped by almost 10% to tracking rally of crude oil prices. Investors and creditors are concerned about fundamentals and balance sheet of Apexindo.
Crude Oil Rally (2)
Shares of oil and gas producers continued their rally Thursday as WTI and Brent crude oil advanced 2.6% and 2.8% each in New York. WTI crude was traded at US$50.9 per barrel, while Brent at US$53.5 per barrel. Other commodities were mixed with copper gaining 1.2% on the Chicago Mercantile Exchange, while gold slipped 0.74%.