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Jakarta Post

Coal: Power of the future despite looking black now

  • David Chang

    Analyst

Jakarta   /   Fri, November 21 2008   /  11:13 am

The Indonesian stock market was one of the worst performing markets in the Asian region with a drop of well over 50 percent from the beginning of 2008. Commodities are among the worst-hit sectors caused by the sharp plunge in crude oil & commodity prices as mounting evidence indicates that the global financial crisis may hurt world economies, consumer demand and corporate earnings. Coal mining company Bumi Resources plunged 81 percent during this period while other coal mining companies fell by between 48 percent and 54 percent. The main reason for the sharp drop in coal stocks is that coal prices fell about 46 percent from their peak of US$192 per ton in July 2008 to $103 currently. The bigger fall in the Bumi share price, relative to other coal stocks, was partly due to a drop in investor confidence following the suspension of trading in its shares on the st...