Indonesia Daily Focus December 8, 2020
Weekly commodity alert – Mostly glad tidings
We
predict that the US’ daily oil production for December 4 would be
higher, relative to the preceding week. Meanwhile, we predict that the
US’ oil refinery input for December 4 would be higher that last week’s
figure. We think that global coal prices would be trading higher this
week, given the higher estimate for China’s November coal (lignite)
import. In our view, Adaro Energy (ADRO), Indo Tambangraya Megah (ITMG),
Bukit Asam (PTBA), and other coal-related stocks would be attractive
this week.
We
think that global nickel prices would be attractive this week, provided
some positive catalysts. Meanwhile, we think that global tin prices
would be trading on both sides of the market this week, instead, due to
two-sided catalysts. Overall, we predict that global gold prices would
be trading higher this week, given the estimate for the US’ weakening
purchasing power. In our view, Aneka Tambang (ANTM), Vale Indonesia
(INCO), Merdeka Copper Gold (MDKA), and other nickel-related and
gold-related stocks would be attractive this week.
According
to the latest news, an expert in the CPO industry expects that global
CPO prices would potentially reach MYR4,000/tonne (USD982/tonne) in
January based on his supply-demand analysis. We note that Indonesia, as
the biggest global CPO producer, increased CPO export levy to
USD180/tonne, from USD55/tonne, to be effective on December 10. Overall,
we think that global CPO prices will be trading on muted mix this week,
given two-sided catalysts.
Comments
Post a Comment