Shares of coal producers listed on Indonesia Stock Exchange (IDX) ended mostly lower to tracking the broad market. Adaro Energy (ADRO), for example, ended at Rp1280 to make market capitalization of Rp40.94 trillion only, way below Bukit Asam (PTBA) and Bayan Resources (BYAN).

SGX-Catalist listed Silkroad Nickel Ltd, an Indonesian nickel mining group announced that its subsidiary PT Teknik Alum Service (TAS) had on December 11, 2018, entered into a new long-term offtake agreement with PT Transon Bumindo Resources (TBR).

In late November 2017, Golden Energy and Resources Limited, a coal mining company controlled by Sinarmas Group, agreed to purchase 10% shares of ASX-listed gold miner Westgold Resources Limited at A$1.885 per share. This morning, the stock declined further by 1.71% to A$0.86 to make a market capitalization of A$334.64 million.

Gold is now traded around US$1247 per ounce, gained 3% month-on-month, but down 0.43% year-on-year. Gold miners in Indonesia, including PT J Resource Asia Pasifik Tbk (PSAB), a company controlled by Johan Lensa family, however, proceed with their expansion programs. With market value of Rp5.03 trillion, PSAB is not even half of Merdeka Copper Gold (MDKA). 

Integrated energy company Indika Energy (INDY), one of the largest coal producers in Indonesia, has decided to follow other giants in diversification of business. Like Pamapersada, subsidiary of Astra Group’s United Tractors (UNTR), which acquired Martabe gold mine, Indika Minerals Investindo—-subsidiary of INDY—-decided to enter gold mine.

Shares of Stanmore Coal Limited were traded higher at A$1 this morning on Australia Stock Exchange (ASX) to represent market value of A$252.83 million as some investors anticipate a higher offer price from Sinarmas Group’s Golden Energy and Resources Ltd (GEAR). The board of Stanmore has earlier last week recommended shareholders to reject Sinarmas’ A$0.95 takeover offer.

Oil price fell below US$50 per barrel in early trading on Thursday (Nov. 29) amid concerns about excess global supply, and after data showed that the U.S. crude inventories rose for the 10th straight week. Nevertheless, the price rebounded 2.1% to US$51.34 a barrel (West Texas Intermediate) after sources said Russia had accepted the need for cuts in production together with OPEC. Nymex’s crude oil rose 2.21% to US$51.40 a barrel.

Oil market rout continued Friday (Nov 23) when WTI crude oil falling 6.6% to US$50.5, while Brent down 6.15% to US$58.8 per barrel. That means Brent, an international benchmark, has fallen 22.83% month-on-month. The fall in oil prices comes just in time for President Joko ‘Jokowi’ Widodo, who seeks a second term in next April election.

Thermal coal was traded at US$97.75 per ton Thursday (Nov 22). Like crude oil, thermal coal has dropped significantly from its peak this year amidst concern on US-China trade war, which could drag down the global economic growth. 

Unlike Bumitama Agri and First Resources, SGX-listed plantation firm Kencana Agri Limited reported a net loss of US$6.34 million in the third quarter (Q3) of 2018—widened from loss US$1.38 million in the corresponding period of 2017, mainly due to foreign exchange (forex) loss of US$7.45 million. In Q3 of last year, the Company only recorded a forex loss of US$2.37 million.