Safe! Cuan’s ‘Old Economy’ Stock in September, Here’s the Winner

Jakarta, CNBC Indonesia – Along with the Composite Stock Price Index (JCI) which managed to grow 5%, there were a number of stock sectors that became winners and ‘losers’ during the third quarter of 2021.

According to data from the Indonesia Stock Exchange (IDX), during the third quarter of this year, the JCI rose 5.03% to 6,286.94 at the close of trading on Thursday (30/9/2021). Meanwhile, the leading stock index (blue chip) LQ45 rose 5.85%.

The following is the performance of the sectoral stock index (IDX-IC) during the third quarter of 2021.

IDX Sectoral Index Performance Quarter III 2021

Source: Indonesia Stock Exchange (IDX) | Last per 30 September 2021

Referring to the data above, the energy stock index (IDXENERGY) led the ‘standings’ by rising 38.35% to 996.28.

The increase in the sector index is considered to be old economy This was supported by a rally in coal stocks and a small number of oil and gas (oil and gas) issuers in line with soaring coal and oil commodity prices.

Shares of listed coal company PT Perdana Karya Perkasa Tbk (PKPK), for example, soared 158.06% during the third quarter. Another example, Rajawali Group’s coal shares, PT Golden Eagle Energy Tbk (SMMT) soared 88.24%, PT Harum Energy Tbk (HRUM) rose 72.06%, PT Adaro Energy Tbk (ADRO) jumped 44.44%.

Then, oil and gas shares of PT AKR Corporindo Tbk (AKRA) jumped 40.78%, PT Elnusa Tbk (ELSA) rose 14.81%.

Coal prices have continued to soar since the beginning of the year. Currently, the price of this black stone commodity is already above the level of US$ 200/ton.

Yesterday, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 217/ton. Up 3.41% compared to the previous day’s position as well as being the highest since at least 2008.

Coal prices are undergoing a bullish trend. Imagine, in the last month the price has soared 23.76% point-to-point. Since the end (year-to-date), the increase has reached 163.35%. Coal is one of the commodities with the highest price increase this year.

The increasingly expensive gas price also controls the price of coal. In the past week, natural gas prices in Henry Hub (Oklahoma) jumped 20.58%. On a year-to-date basis, prices soared 136.31%.

Increasingly expensive gas prices make the cost of generating electricity using this fuel increasingly uneconomical. In Europe, the cost of generating electricity with natural gas is EUR 75,725/MWh on 28 September 2021. With coal, the price is only EUR 50.53/MWh. This makes coal become the prima donna again, even in Europe, which upholds the issue of being environmentally friendly.

“According to our study, coal-fired power generation in Europe has increased to near the peak. The increase in gas prices will further encourage coal price growth, as consumption continues to increase,” said Toby Hassall, Analyst at Refinitiv, in his research.

For three dollars, the price of oil shot up. Brent oil prices, for example, broke above US$ 80 barrels for the first time since 2018.

The increase in oil prices did not happen recently. Since the end of 2020 (year-to-date), the price of Brent has jumped 51.54% point-to-point.

Shares in the transportation sector soared 22.05% during the third quarter. p . stockThe car rental and logistics service company owned by entrepreneur TP Rachmat PT Adi Sarana Armada Tbk (ASSA) managed to climb 59.42%.

Then, the shares of PT Transkon Jaya Tbk (TRJA) rose 48.24%, shares of PT Putra Rajawali Kencana Tbk (PURA) rose 29.93%. Then, the shares of PT Guna Timur Raya Tbk (TRUK) ‘fly’ 96.51%. Not to forget the shares of PT Trimuda Nuansa Citra Tbk (TNCA) soared by 203.03%.

Different fate, technology stock index (IDXTECHNO)–which includes new economy–became the most down, ie 12.50% to 9,442.68. The decline in the performance of the technology index during the third quarter was due to the lack of positive sentiment.

Across it e-commerce which was owned by the Emtek Group PT Bukalapak.com Tbk (BUKA) on August 6, 2021, which was originally considered to be contributing to the performance of IDXTECHNO, instead it went less smoothly. Over the past month, BUKA’s shares have fallen 5.59%, while since their debut, BUKA’s shares have only slightly increased 1.18%.

The shares of BUKA’s parent, PT Elang Mahkota Teknologi Tbk (EMTK) also plunged, which is 32.07%, during the third quarter of 2021.

Then, shares of data center issuer Toto Sugiri, part of which is also owned by Indofood boss Anthoni Salim, PT DCI Indonesia Tbk (DCII), also fell 23.35%. In fact, DCII shares had become the prima donna among other technology stocks, along with the many sentiments–including the entry of Anthoni Salim into the stock some time ago.

CNBC INDONESIA RESEARCH TEAM

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