Coal-Related Stocks Rally in Response to a Gradual Increase in Coal Prices to Meet Demand


The share prices in coal-related stocks edged higher in the morning session on June 11, 2021, in response to the gradual increase in coal price.

 

The share price of Banpu Public Company Limited (BANPU) rose ฿1.00/share or 6.90% to close the morning session at ฿15.50/share with a trading value of 2,885 million baht.

The Lanna Resources Public Company Limited (LANNA) rose ฿1.30/share or 9.15% to close the morning session at ฿15.50/share with a trading value of 163 million baht.

Asia Green Energy Public Company Limited (AGE) rose ฿0.38/share or 9.69% to close the morning session at ฿4.30/share with a trading value of 229 million baht.

 

Asia Wealth Securities (AWS) stated that the increase in share price of coal-related stocks was due to the gradual spike in global coal price as Barlow Jonker Index (BJI) traded at $125.40/ton earlier this week, representing an increase by 50% this year and a tremendously growth from last year’s low at $40/ton. Meanwhile, AWS expected that the coal price could continue to extend moving forward. However, there could be a risk of higher coal prices that users might decide to use oil instead.

In addition, the rise in coal prices was supported by a lack of global supply as operators seized their operations during the Covid-19 outbreak and could not yet return to business. Meanwhile, China also banned coal imports from Australia, while the demand kept rising from the reopening.

 

Back to top button