Chinese Coal Companies Rise on Price Rebound: Hong Kong MoverBenjamin Haas
China Shenhua Energy Co., the nation’s biggest producer, paced gains in coal company stocks in Hong Kong on optimism prices will rebound.
China Shenhua, which today reported a 40 percent jump in sales last month, rose the most in three months and traded up 5.4 percent at HK$24.55 at 1:40 p.m. local time, while China Coal Energy Co. touched a one-month high. They are the two top performers today on the Hang Seng Index.
The China Bohai-Rim steam coal price rose to 531 yuan ($87) a metric ton yesterday after falling for 16 weeks, according to Qinhuangdao Seaborne Coal Market’s yesterday. The 26-member Bloomberg Asia Pacific Coal Index gained 2.6 percent at 12:50 p.m., narrowing its decline this year to 31 percent.
“Coal market fundamentals are now showing early signs of recovery,” Daniel Kang and Waiyin Karen Li, Hong Kong-based analysts at JPMorgan Chase & Co., said in an Oct. 14 note to clients. “The domestic thermal coal price war that erupted in late June, causing a collapse of nearly 15% in prices, is now over.”