New record for Astra

The stock price of Astra International (ASSI) reached its new record high this morning at Rp38900 to make it a US$17 billion (Rp157.5 trillion) company. Astra gained 5% this morning.

Astra is just inches away from becoming the largest company on IDX. Astra is only US$1.4 billion away from taking over the position from Telekomunikasi Indonesia (TLKM). TLKM currently has market cap of Rp170 trillion and already lost 10.6% this year, while Astra gained 12%.

Two of Astra subsidiaries, PT United Tractors (UNTR) Tbk and PT Astra Agro Lestari (AALI) Tbk are also listed in the Top 20. UNTR is currently ranked 10th with market cap of Rp56.04 trillion, while AALI ranked 17th with market cap of Rp37.7 trillion. UNTR is now bigger than Bumi Resources (Rp47 trillion) and just inches away from No.8 Adaro Energy (Rp59.5 trillion). The top 7 will unlikely change in the coming weeks, because No. 7 Unilever currently has market cap of Rp88.9 trillion, quite substantial gap with Adaro.

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When Adaro is bigger than BUMI

Adaro Energy (ADRO) closed 2009 as the biggest coal company in terms of market capitalization with Rp55.3 trillion, bigger than Bumi Resources (Rp47 trillion) even though it produced far less coal and has far smaller assets. The combined market capitalization of six major coal producers listed on IDX is US$22 billion.

BUMI was the most active stock traded on the whole exchange. The company is also the most aggressive in raising new loans. BUMI and ADRO raised over US$5 billion from the debt market in 2009. Combined with Bayan and Indika, coal producers raised lot more loans than any sector in the country.

BUMI stock price surged 166% in 2009, while Adaro skyrocketed by 257%. Third largest coal producer in terms of market cap is Bukit Asam (Rp39.7 trillion), followed by Indo Tambangraya (Rp35.9 trillion), Bayan Resources (Rp18.8 trillion), and Indika Energy (Rp11.6 trillion).  

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IDX = Coal Stock Exchange

Trading value of nine coal-related stocks at Indonesia Stock Exchange (IDX) on Thursday, November 12 reached Rp3.5 trillion or about 63% of the total trading value on the market. That's why we call IDX with new name: Coal Stock Exchange. 

BUMI was still the busiest casino with trading value of Rp1.8 trillion. But Adaro Energy (ADRO) closed the gap with trading value of Rp585 billion. The third largest was Indo Tambangraya Megah (ITMG) with Rp241 billion and the new kid on the block, Delta Dunia Makmur (DOID), with Rp127 billion.

Some traders said "coal is just too HOT to resist." The combined market capitalization of six major coal players on IDX is currently US$19.2 billion, declined 47% from their peak last year of US$36.5 billion. Interestingly, BUMI is not the largest coal stock anymore, in terms of market cap. ADRO has taken over BUMI's number one spot with market cap of US$5.23 billion, followed by BUMI with US$4.7 billion, Bukit Asam (US$3.4 billion), Indo Tambangraya (US$2.9 billion), Bayan (US$1.85 billion), and Indika (US$1.16 billion).

Other traders said "but I'm bit worried about burning down of coal stocks." Why? 

Well, with the exception of BUMI which is 73% below its peak last year, others are currently traded less than 45% below peak. ADRO is even traded 13% below its peak. Why people were so optimistic about coal while the actual prices of thermal coal may not recover to 2008 level for sometime?

Coal stocks have surged substantially this year. BUMI, for example, recorded 465% gain since January 15. Adaro has tripled (+212%) this year. United Tractors +257%. They might be dreaming of similar gains in the next few months. Nothing wrong with that. But...

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Djoko Suyanto resigned from Adaro

Marshall (ret) Djoko Suyanto has resigned as independent commissioner of PT Adaro Energy (ADRO) Tbk. Djoko is the coordinating minister for politic, security, law, and human rights. 

Adaro informed stock market authorities that the management is seeking his replacement. Djoko was military commander in 2006-2008 and air force chief of staff in 2005-2006. He was deputy chairman of SBY-Boediono national campaign team in the July election. 

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Adaro shareholders restructure ownerships

PT Adaro Energy (ADRO) Tbk announces that the key shareholders intends to restructure some of their holdings of stock into a single entity called PT Adaro Strategic Investment, which directly owns 43.91% shares of ADRO.

ADRO told investors this morning that the shares of Rachmat family, Thohir family, Subianto family, Mr Edwin Soeryadjaja, and Mr Sandiaga Salahuddin Uno, are consolidated into PT Adaro Strategic Investment.

Adaro is the second largest coal producer in Indonesia with market capitalization of Rp38.4 trillion or about US$3.8 billion. So, the value of ASI's shareholding in Adaro is about US$1.7 billion. The stock has surged 140% this year. 

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