JAKARTA (Yosefardi) – Investors sold shares of giant coal miner Bumi Resources (BUMI) this morning on concern over the company’s liquidity issue.
BUMI fell 2% to Rp485 per share, rebounded 21% from buttom, but lost 35% from its peak year to date.
Moody’s Investors Service says excess coal supplies and continued weak prices for the commodity over the next 12-18 months, will cause significant financial stress on the least liquid coal producers in Asia Pacific, increasing their risk of default.
Moody’s also concerned about the liquidity levels of Hidili Industry International Development, Bumi Resources and Mongolian Mining, as they all face significant liquidity and refinancing risks over the next 12 months.
Other coal stocks; Bumi Resources Minerals gained 4.26%, Berau Coal surged 4.59%, Harum Energy rose 0.8%, while Adaro Energy declined 1.08%.