Foreign houses were hungry for PT Bumi Resources Tbk (BUMI). Just in a week, 10 foreign brokerages posted Rp2.36 trillion in net buy of BUMI, signaling a buoyancy appetite for Indonesia largest coal mining producer.
In return, BUMI sky rocketed 19.58% in five consecutive trading days from Rp2,425 to Rp2,900, a steep jump compared to other stocks.
Referring to Indonesia Stock Exchange data, CLSA Indonesia ranked top by accumulating Rp565.38 billion in net buy for BUMI in the first week of 2010. Credit Suisse, a very close investment bank for Bakrie Group, recorded Rp382.86 billion in net buy, sending it at the second position after CLSA Indonesia.
Kim Eng Securities and Macquarie Securities recorded Rp356.49 billion and Rp332.95 billion in net buy respectively. JP Morgan Securities made net buy on BUMI of Rp223.76 billion, followed by RBS of Rp194.91 billion and Bank of America-Merrill Lynch of Rp175.91 billion.
UBS Securities, Deutsche Securities, and OSK Nusadana posted Rp50.04 billion, Rp45.64 billion, and Rp30.99 billion in net buy respectively.
BUMI Corporate Secretary Dileep Srivastava said the company is uncommitted on more than 65% of its saleable output in 2010 and almost entirely uncommitted on price in the subsequent years. "BUMI should be able to secure higher prices on fresh coal contracts being negotiated," he said on Friday last week.
He said this augurs well for BUMI being able to outperform on key operating and income parameters in 2010 and beyond. According to Dileep, BUMI reached record breaking production level in the third quarter last year. "We are confident of being able to put out higher quantities and take advantage from the projected market buoyancy going forward and evidenced by Newcastle Coal Index for spot rising to more than US$100 per metric ton.
Fortis Fund Management owns 1.03% of BUMI, Barclays Global holds 1.95%, while Vanguard Group and Blackrock Group hold 0,81% and 0.59%.
