Major Thai Coal Stocks Rally after Global Coal Prices Set Fresh Records

Major Thai coal stocks rallied on Tuesday after global coal prices set a fresh record.

As of 10.37 a.m. Thai time, the share price of Banpu Pcl. (SET: BANPU) rose THB0.30/share, or 2.10%, to THB14.60/share, with a trading value of THB960 million.

The share price of The Lanna Resources Pcl. (SET: LANNA) rose THB0.80/share, or 3.52%, to THB23.50/share, with a trading value of THB101 million.

The share price of Asia Green Energy Pcl. (SET: AGE) rose THB0.22/share, or 5.29%, to THB4.38/share, with a trading value of THB129 million.

Overnight, the price of Newcastle coal (NCF) climbed by US$25/ton, or 5.75%, to US$460/ton, setting a new record after surpassing the previous high of US$445.50/ton set last month.

Similarly, the price of Indonesian coal (ICI) has increased by 19%, from US$74.80/ton last month to US$88.75/ton yesterday (September 5).

A surge in global coal prices was mostly spurred by Europe’s ongoing energy crisis, which resulted from Russia’s indefinite suspension of gas flow through the key Nord Stream 1 pipeline to Europe, and that Europe was forced to turn to coal as an alternative energy source.

CGS- CIMB Securities Thailand recommends “BUY” on coal equities such as BANPU (TP: THB16.32), LANNA, and AGE.