HK Stock Market Move | Coal stocks extend gains in the morning, the Strait of Hormuz remains closed, and the market expects further upward movement in the valuation of energy.

Coal stocks rose in the morning, as of the time of publication, Mongolian coking coal (00975) rose by 4.06% to HK$11.79; China Coal Energy (01898) rose by 3.43% to HK$13.86; China Shenhua Energy (01088) rose by 3.33% to HK$47.12; YANCOAL AUS (03668) rose by 2.99% to HK$40. On the news front, with the sudden escalation of military conflicts in the Middle East, the global energy supply chain is facing serious challenges. As a result, thermal coal prices have soared to the highest level in over a year. Analysts point out that this is the biggest external shock that the global coal market has encountered since the Russia-Ukraine conflict in 2022. Considering the current difficulty in filling the energy gap in the short term, bullish sentiment in the market remains strong, and the trend of high volatility and high prices is expected to continue until the situation clears up. Dongzheng Futures released a research report stating that the continued closure of the Strait of Hormuz has led to further upward pressure on energy valuation expectations. The ongoing Middle East conflict remains the biggest uncertainty. Overseas coal prices have been blocked for about a month, and the evolution of the situation is being closely monitored. Coal prices are strong externally but weak internally, and there is still upward risk in the medium to long term valuation, while short-term expectations are for a volatile market.