Rally of Commodities & Stocks (3)
Commodities-related stocks continued their rally in the region Monday (March 7) as crude oil advances to higher grounds. Trading volume was also heavier in mining and energy stocks as more speculate on possible further rally of commodities. For how long?
Nickel Smelters, So Far…
Bisnis Indonesia newspaper reported this morning that Chinese investor plans to build US$100 million nickel smelter in Minahasa Utara, North Sulawesi province. Investment Coordinating Board (BKPM) has reportedly approved the investment, extending the list of Chinese investors in the nickel processing industry.
Rally of Commodities & Stocks (2)
Dr Copper gained 2.43% on the Chicago Mercantile Exchange (CMX) Friday (March 4) as WTI crude oil advanced 5.1% to US$36.3 per barrel on the Nymex. Commodities-related stocks, accordingly, continued their rallies worldwide with both Anglo American and Glencore jumped more than 11% each in London.
Cita Mineral & Its Alumina Project
Oversea-Chinese Banking Corporation Ltd has just provided US$35 million USD specific advance facility for working capital and general corporate funding purposes for PT Cita Mineral Investindo (CITA) Tbk, which develops US$1 billion smelter grade alumina (SGA) in West Kalimantan province.
Rally of Commodities & Stocks
Peabody Energy Corp, the largest coal producer in private sector, jumped almost 33% in New York last night, while Consol Energy advanced 9%. BHP Billiton and Rio Tinto followed with 2% and 1.3% gain respectively in Sydney this morning as investors continue to bet on recovery of commodities. WTI crude oil hovers above US$34 per barrel, while Brent oil moves around US$37.
Bottoming Out of Commodities
The benchmark nickel price advanced to US$8760 per ton on the London Metal Exchange (LME) Wednesday to represent 18% gain from its bottom in early February 2016. Dr Copper also advanced to US$4780 per ton on LME to show somewhat similar recovery with nickel and other metals. Have the commodities been bottoming out?
Aneka Tambang to Lower Grounds
Like Bukit Asam, state miner Aneka Tambang (ANTM) has gained 15% from recent bottom. The difference, Aneka Tambang posted net loss of Rp1.44 trillion last year, almost doubled from 2014, including significantly weaker performance in the fourth quarter from falling prices of nickel.
Stronger Q4 for Bukit Asam
State coal producer PT Tambang Batubara Bukit Asam (PTBA) Tbk reported net profit of Rp2.04 trillion last year, an increase of 9.2% from 2014, thanks to strong performance in the fourth quarter of 2015.
Kutilang Paksi Mas’ PKPU, Tanri Abeng & Energy Reform
Kutilang Paksi Mas has submitted their peace proposal to escape bankruptcy filed by two of its creditors, namely HSBC Indonesia and Citibank NA. The case is interesting for lots of reasons, including politics and policy making in energy sector, and efforts from energy and mineral resources ministry to reform the industry.
Speculation in Coal Stocks
Peabody Energy, one of the world’s largest coal producers, gained 10.41% in New York last night, while Consol Energy jumped 10%. BHP Billiton and Rio Tinto, meanwhile, advanced 2.4% each in Sydney this morning, as investors continue to speculate on energy market. Brent crude oil rallied to US$36 per barrel Monday, while WTI crude stays closer to US$34 in Asian trading.