PSL

PSL: +2.9% at $0.36, the session's most-active share by both volume and value traded, more than 16% of shares traded, but the gains may be premature. The construction-engineering firm said it entered an MOU to acquire Sinar Wijaya Pratama, which holds an Indonesian mining license for a Jambi province site. PSL had previously announced plans to diversify into coal mining, but entering a new field may present learning-curve challenges. Additionally, Indonesia's coal sector has been buffeted by concerns over possible changes to its coal policies. Any earnings contribution could be distant as SWP hasn't commenced production. Dilution could also be a concern; PSL is paying $5.0m as a deposit, with the remaining consideration, which will be determined by estimated reserves, to be paid on a 50:50 cash-and-shares basis, with the shares to be priced at $0.32. Dow Jones says players interested in placing chips on the Indonesian coal sector may be better served by Sakari . PSL's recent $0.40 peak likely offers resistance.