Bumi Tumbles 16.24%, investors dumped Bakrie-related stocks

Resources

Monday, 24 May 2010 17:34

Written by Badai

It was one of worst days of the country's biggest thermal coal producer, PT Bumi Resources Tbk (BUMI). Its shares plunged 16.24% on Monday on market rumor that the company as planning to launch rights issue.

Bumi shares lost Rp345 or 16.24% to close at Rp1,780 per share. The stock was traded heavily with 684 million shares exchanged hands. Bumi is not alone. Energi Mega Persada (ENRG) is even worse. ENRG crashed 19.33%. Property developer Bakrieland slashed 18.87% to Rp129, way below its proposed rights issue price of Rp160. Bakrie Sumatra Plantation crashed 16.25%, Bakrie & Brothers lost 12.9%, and Bakrie Telectom -2.11%.

These stocks were traded heavily, more than enough to drag down the whole market. IDX composite index closed lower by 0.52% while its peers in the region closed mainly in higher grounds.

Some market players said that the plunge of Bakrie Group shares were triggered by market concerns of a plan by rating agencies to downgrade Bumi ratings.

Bumi Resources vice president and investor relation, Dileep Srivasta denied the market rumor. “There has been irresponsible rumor that Bumi was planning to launch rights issue. The rumor was quoted by global fund managers,” Dileep was quoted by detik.com as saying. He suspects that such rumors have sparked massive sell-off on Bakrie Group shares.

BUMI's free fall dragged down other coal-related stocks. Mining contractor Darma Henwa conceded 12.5%, Delta Dunia -7.3%, Indo Tambangraya -3.9%, Adaro -2.17%, and Bukit Asam -0.62%. In the oil and gas sector, Benakat slashed 5.7%, while Medco conceded 2.73%.

In the plantation sector, Sampoerna Agro lost 4.65%, Tunas Baru Lampung slipped 3%, while Gozco lost 3.23%.

» Trada Maritim Mulls Rights Issue

Theindonesiatoday.com - Marine transportation service in energy sector PT Trada Maritime Tbk (TRAM) plans to launch rights issue next year for funding its business expansion, Bisnis.com reported.

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