Three Thai major coal shares opened with an upbeat mood on Friday as the coal prices continued upward amid Indonesia export ban to secure its local supplies.
As of 12.30 hrs. local time in Thailand, the share price of Banpu Public Company Limited (SET: BANPU) rose THB0.20/share or 1.82% to THB11.20/share, with a trading value of THB1,466 million.
The share price of The Lanna Resource Public Company Limited (SET: LANNA) rose THB0.60/share or 3.66% to THB17.00/share, with a trading value of THB235 million.
The share price of Asia Green Energy Public Company Limited (SET: AGE) rose THB0.10/share or 3.07% to THB3.36/share, with a trading value of THB34 million.
Indonesia, the world’s largest thermal coal exporter, announced a month-long ban on coal exports on Saturday to avoid shortages at domestic supply. China’s coal prices have risen in response to concerns that the export ban could endanger energy security in several of the biggest economies.
Many Indonesian coal miners, however, are seeking exemptions from a coal export restriction imposed at the start of the year, as the expenses of having scores of ships stranded offshore keep going up.
LH Securities recommends “BUY” on BANPU with a target price of THB14.00, anticipating strong profit growth in the fourth quarter of 2021 due to increased sales volumes and average coal selling prices throughout the winter. LH forecasts that BANPU’s growth will continue in 2022, as coal prices are likely to climb further than it did last year.
