Chance for Timah's Share Price to Keep Increasing
Monday, 19 February, 2007 | 13:33 WIB

TEMPO Interactive, Jakarta: Shares of PT Timah Tbk. have become the star for investors on the stock exchange floor.

Today, the TINS-code share price stands at the level of Rp9,250 per share, having increased by 100.04 percent, compared to the share price at the end of 2006 of only Rp4,425 per share.

The year of 2006 was a turning point for PT Timah, because for two past years, the share performance was mediocre.

The many activities of illegal tin mining spoiled the company’s performance and its shares.

During 2006, investors who held Timah's shares gained profits of 143.13 percent with the price increasing from Rp1,820 (December 29, 2005) to Rp4,425 per share (December 28, 2006).

The profits have also boosted investors to keep hunting the shares of other listed state mining companies.

Mining analyst of PT Trimegah Sekuritas Tbk. Sebastian Tobing, said that the increase in Timah's shares correlated with the rise in the value of the commodity in world markets.

Currently, the tin price at the London Metal Exchange stands at the level of US$13,175 per ton (February 15, 2007).

“The average tin price of the year is estimated to reach US$12,500 per ton or a 42.7 percent increase compared to the price in 2006 with US$8,756 per ton,” he said.

In addition, Sebastian gave a positive evaluation about the government's seriousness in closing down 36 illegal mining companies at Bangka and Belitung Island.

Research Head of PT Samuel Sekuritas Christine Salim has estimated that Timah’s short-term price may reach Rp10-11 thousand per share.

MUCHTAR WIJAYA (PDAT)