Coal stocks continued on an upward trajectory on Thursday morning after coal set fresh all-time highs, with BANPU, LANNA and AGE leading gains.
At 11.30 hrs. local time in Thailand, the share price of Banpu Public Company Limited (SET: BANPU) rose THB0.50/share or 4.13% to THB12.60/share, with a trading value of THB4,746 million.
The share price of The Lanna Resources Public Company Limited (SET: LANNA) rose THB0.70/share or 3.10% to THB23.30/share, with a trading value of THB643 million.
The share price of Asia Green Energy Public Company Limited (SET: AGE) rose THB0.55/share or 11.00% to THB5.55/share, with a trading value of THB232 million.
KTBST Securities (KTBST) has a positive view on coal prices in the short-term despite the winter has passed, stating that the price will remain high for a while, with Russia’s war with Ukraine appearing to be the key driving factor. Concerns over supply shortages grow as major buyers such as Japan and South Korea, which has a pro-Ukrainian position, avoid Russian coal and instead purchase it from Indonesia and Australia.
Newcastle coal prices hit a new record of US$400/ton and futures rose US$140/ton in a single day. While ICE Newcastle thermal coal futures for April are now fetching US$446.00/ton, up US$140.55 from a day earlier.
KTBST maintains a “Neutral” view on the energy sector and favors upstream energy stocks, with BANPU (buy/target price THB15.00) as its top pick. KTBST believes that the sanctions on Russia will have an effect on energy prices, driving both coal and crude oil at record high levels in the short to medium term.
