Straits Asia locked in good price rises for '09

Straits Asia headed higher as beaten-down commodity plays among best performers in today''s market rally. Thermal coal miner has grappled with weak sentiment recently on worries over falling commodity prices, but Macquarie says company locked in good price rises for next year. Broker says channel checks indicate company locked in 5.5 m tons '09 production at US$110/ton vs '08 price of US$70; "given that 50% of '09 production has been locked in at prices of US$110/ton, we believe a re-rating in the stock is overdue." Maintains Outperform call, $5.10 target price.