HK Stock Market Move | Most coal stocks are rising, with Europe and East Asia passively initiating energy transition. Despite geopolitical disturbances, coal prices still have upward momentum.

Coal stocks mostly rose, as of press time, CHINA QINFA (00866) rose 2.57%, to HK$3.19; KINETIC DEV (01277) rose 2.54%, to HK$2.02; YANCOAL AUS (03668) rose 1.76%, to HK$40.5. On the news front, U.S. President Trump said on April 12 that oil and gasoline prices may remain high until the midterm elections in November - a rare acknowledgment of the political cost of his decision to launch an attack on Iran six weeks ago. Orient believes that the conflict between the U.S. and Iran is still simmering, and the energy supply issue may not be resolved in the short term. The probability of oil prices remaining high is high, and in this context, coal prices still have upward momentum. GF SEC pointed out that coal supply and demand will shift from loose to tight by 2026, with coal prices performing better than expected since the beginning of the year. In the short term, global energy prices and coal demand are further boosted by the Middle East situation, and the cost of imported coal also increases, with coal profitability and valuation elasticity expected. Guotai Haitong stated that under the backdrop of geopolitical disturbances, Europe and East Asia are passively switching energy sources, which may lead to a rebound in global coal demand in 2026. In the subsequent years of 2027-2028, global coal demand may enter a short-term upward cycle driven by AI and extreme weather-induced high growth in electricity demand.