In the early morning session of Wednesday, October 6, coal stocks extended their rally in the SET Index, amid an uptick in coal prices.
As of 11:05 local time in Thailand, the share price of Banpu Public Company Limited (BANPU) rose ฿0.90/share or 6.47% to ฿14.80/share, with a trading value of 3,072 million baht, marking the fourth consecutive day of gains.
BANPU has increased by 2 baht or 16% in total since the closing on September 30. Also, the share touched an all-time high in two years and ten months.
The share price of Asia Green Energy Public Company Limited (AGE) rose ฿0.20/share or 6.02% to ฿3.52/share, with a trading value of 326 million baht.
The share price of the Lanna Resources Public Company Limited (LANNA) rose ฿0.75/share or 2.68% to ฿28.7/share, with a trading value of 250 million baht.
According to Capital Nomura Securities (CNS), BANPU is starting to reap the benefits of its business restructuring to place a greater focus on energy technology as part of the company’s “Greener, Smarter Growth” strategy.
For the coal business, the market believes that the recent price increase will boost BANPU’s 2021 performance, which is expected to recover to profitability of 2-3 billion baht from a loss a year earlier.
CNS estimates that the present BANPU price is still optimistic due to the baht depreciation benefit and the continued increase in coal prices, giving support level at 13.0/12.6 baht and resistance level at 13.6/13.9 baht.