JAKARTA (Yosefardi) – Investors focusing buying in Bakrie Group stocks on Friday (Dec 19), mainly coal stocks, spurred by President Joko Widodo’s bailout of almost Rp800 billion liabilities of Lapindo to the mudflow victims in Sidoarjo, East Java.
At 3 pm Jakarta time, Berau Coal Energy (BRAU) soared 27.78% to Rp69 with over 16 million shares exchanged hands. The stock had fallen 53% from Rp148 since September 18, 2014. Year to date, the stock lost 63%.
Bumi Resources (BUMI) skyrocketed 32.08% to Rp70 per share with over 761 million shares traded. The stock lost 79% from its highest at Rp346 in January 15, 2014.
While Borneo Lumbung Energi & Metal (BORN) jumped 16% to Rp58 per share with over 11.8 million shares exchanged hands. Year to date, the stock has fallen 50%.
The bailout gives Bakrie a lifeline. The family is given four years to repay the government. The family can use the same amount of funds to cooking up BUMI and other shares.