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.
Masela Block: Testing Jokowi’s Wisdom (3)
President Jokowi has yet to make decision on plan of development (PoD) for the giant LNG project to process gas from Masela Block in Maluku province. His decision will be another test of the president’s leadership and ability to walk out of the jungle of Indonesian politics. The decision might also lead to recalibration of power between influential figures in the ruling elite.
Speculation in Energy Stocks
Indo Tambangraya Megah (ITMG) jumped another 17% with significant trading volume in the first hour of trading on IDX Monday (Feb 29). That means the stock already gained 63% from its recent bottom on relatively strong performance last year and speculation about possible rally in coal prices.
Palm Oil Journal
Felda Global Ventures Holdings produced 154,182 tons of crude palm oil (CPO) last month, fell significantly by 23.8% from December 2015. Our database pointed to a combined output of 25 plantation companies listed on KL Stock Exchange at 665,700 tons in the month, dropped by 21% from December 2015.
London Sumatra: Results & Outlook
London Sumatra Plantations (LSIP), controlled by Salim Group, posted net profit of Rp623 billion last year, fell 30% from 2014 due to falling prices of palm oil and natural rubber. The Company, however, performed significantly better than Astra Agro Lestari (AALI), including in the fourth quarter of 2015.