DJ MARKET TALK: Straits Asia Res May Rise On New Production Rts
0006 GMT [Dow Jones] Straits Asia Resources (AJ1.SG) may retrace part of yesterday's 8.0% fall on improved mining prospects following Indonesia's re-zoning of forestry areas in South Kalimantan to allow coal mining. Government decree for South Kalimantan includes significant area within SAR's Sebuku coal concession that was previously restricted from mining. SARS says that land now rezoned as production forest, allowing it to proceed with coal production; adds expected timeline to production about nine months. UBS says move timely as it expects shortfall in thermal coal over next two years; "we believe coal demand will regain momentum inline with economic growth, while supply remains tight due to neglect and lack of investment." Rates stock at Buy, target S$2.50. Stock closed down 8.0% at S$2.08 yesterday, may test yesterday's S$2.21 intraday high. (FKH)