JAKARTA. The weakening of coal prices is considered to affect the performance and share price of issuers engaged in the sale of heavy equipment in Indonesia.
Capital services analyst Chris Apriliony said performance in the heavy equipment sector will be at its peak when the selling price of coal in the market is high. "Here the coal price index is quite far down," Mr Apriliony said as quoted by Kontan on Monday (21/1).
Mr Apriliony stressed that there are currently quite a lot of people using the coal price reference in the Newcastle ICE trade index. However, the index cannot be a reference for coal selling prices. "The ICE Newcastle index does not reflect market coal on the market," said Mr Apriliony.
Responding to this, two heavy equipment issuers in Indonesia namely PT Intraco Penta Tbk (INTA) and PT United Tractors Tbk (UNTR) claimed that coal prices also affect the company's performance. INTA recorded 45% of heavy equipment sales came from the coal mining sector, while UNTR reduced its sales target to 18.37% this year because coal issuers reduced coal production. (KR/MS)