Sakari

Sakari: UBS says comments from Indonesia's trade minister Gita Wirjawan appear to have put another "nail in the export-tax coffin," with media reports quoting him as saying there is no plan to impose export duties; the house tips Sakari as a primary beneficiary if the export tax proposal has indeed been scrapped given its full exposure to the mining law relative to it contract producing peers. While this won't impact the house's Indonesian coal earnings forecasts, since it didn't expect the tax proposal to gather sufficient support, it says earnings remain under pressure from declining coal prices, which could weigh stock valuations for the next few months. Adds, it believes a volume quota on low-grade coal is still likely, as the govt appears set on preserving reserves for future use. It also notes the potential for royalties to be increased later to align low-royalty license holders with higher royalty contract holders. The stock is down 2.3% at $1.25.