HK Stock Market Move | Coal stocks rose against the market trend as Middle Eastern natural gas facilities were frequently attacked. Institutions pointed out that demand for coal as a substitute for gas is expected to surge.

Coal stocks rose against the market trends. As of press time, YANCOAL AUS (03668) rose by 6.86% to 45.68 Hong Kong dollars; KINETIC DEV (01277) rose by 3.14% to 2.3 Hong Kong dollars; China Coal Energy (01898) rose by 1.91% to 14.39 Hong Kong dollars; China Shenhua Energy (01088) rose by 1.1% to 47.98 Hong Kong dollars. On the news front, Iranian sources claimed that Iran successfully targeted the Riyadh oil and gas refinery in the outskirts of the Saudi capital Riyadh, which is a designated area exclusive to the US. Qatar Energy Company issued a statement claiming that the Ras Laffan Industrial City in Qatar was subjected to a missile attack. The statement mentioned that the attack caused a significant fire and resulted in major property damage. Additionally, Israel attacked the South Pars natural gas field in Iran. Guosheng pointed out that LNG, as an important clean fuel, will lead to an increase in industrial, power generation, and residential gas costs when its prices surge. This will prompt power plants and industrial users to switch to alternative energy sources such as coal power and coal gas, increasing the demand for thermal coal procurement. Additionally, LNG and coal have a long-term comparative relationship in the energy cost system. A sharp rise in LNG prices will disrupt the existing balance, driving a reassessment of the value of coal in the market, raising the bottom price of coal. Furthermore, the increase in gas prices will also drive up the costs of coal chemical raw materials, further enhancing the cost advantage of coal in chemical production, stimulating demand for coal in the chemical industry.