VIVAnews – When the Indonesian Stock Exchange opens for its first session today, 26 November 2008, PT Bumi Resources’s stocks finally showed some fire. After another fall on Monday, 24 November, to Rp 640, during first session of trading, it soared to Rp 850 the next day.
Within 30 minutes of today’s first trading session, Bumi Resources’s stocks were the most actively traded. BUMI’s price increased by Rp 130, or 15.29 percent, to Rp 980 per share.
According to Deni Hamzah, an analyst of the state-owned security/pawn company, Perum Pegadaian, the trigger was the positive sentiment towards the buyback of the stocks by Bakrie, and the Northstar Pacific settlement. “It seems BUMI might be getting another upper automatic rejection,” he said to VIVAnews, Jakarta, today, Nov. 26. BUMI stocks were automatically rejected on Monday and Tuesday because of the high deviation in prices.
David Ferdinandus, Senior Vice President of PT Indomitra Securities, said that Bumi Resources’s stock valuation at this time is very low compared to its highest level of Rp 8,550 on 12 June 2008. “Since it touched the highest level of around Rp 8,500, BUMI price at this time has fallen by about 90 percent,” said David to VIVAnews in Jakarta, today, Nov. 26.
According to David, the low stock valuation is what causes investors to buy BUMI shares again. “In terms of performance, BUMI has no problems. So, the stock accumulation is quite normal,” he said.
Meanwhile, analyst of PT BNI Securities, Muhammad Alfatih, said that as for short-term transactions, BUMI stocks will try to continue to reach the next resistance level of Rp 1,050. During today’s transaction, BUMI price has passed the resistance level of Rp 890/970.
The previous week, although there were talks of buybacks, the BUMI's stock prices were continually depreciated. The buyback itself were planned for 3.2 billion stocks at a price of Rp 2,500. The funds needed amounted to Rp 8.24 trillion. The plan was to obtain US$600 million from a third party creditor and the rest internally.
The BUMI stock acquisition of Northstar Pacific had been planned since Saturday, 1 November 2008. PT Bakrie & Brothers Tbk (BNBR) decided to sell 35 percent of BUMI stocks to Northstar Pacific which would value up to US$1.3 billion. President Director of PT Bumi Resources, Ari S. Hudaya said that the stock selling was an effort to settle debts in response to the irrational market conditions, caused by the crisis in the United States. In the deal, the Bakrie & Brothers was not given any rights to buy back the stocks.
VIVAnews writers Antique, Arinto Tri Wibowo, Umi Kalsum, and Ferial contributed to this article.
