HK Stock Market Move | Coal stocks are rising against the market trend as the national oil prices soar, boosting demand for alternative energy sources. Institutions point out that there is new room for coal prices to rise.

Coal stocks rose against the market trend. As of the time of publication, YANCOAL AUS (03668) rose by 3.7% to HK$30.24; Yankuang Energy Group (01171) rose by 3.1% to HK$10.97; KINETIC DEV (01277) rose by 2.56% to HK$1.6; China Shenhua Energy (01088) rose by 1.73% to HK$42.26. On the news front, due to the continued escalation of tensions between the US and Iran, international oil prices soared, boosting expectations for coal demand as an alternative energy source. Zhongtai's research report believes that coal prices have shown a significant year-on-year increase from January to June 2026, with a trend of monthly strength overall. With marginal improvements in supply and demand in the second half of 2026, coal prices are expected to fluctuate and strengthen during seasonal fluctuations. CITIC SEC also stated that coal prices have slightly eased recently, mainly due to short-term demand being weaker than expected, but seasonal effects are expected to show up in coal prices later on. On the supply side, safety supervision continues to affect production pace, leading to an overall tight supply in the industry; on the demand side, with temperatures gradually returning to normal or expanding, combined with catalytic factors such as El Nio weather, there is room for a new round of price increases for coal. The current trend of the sector is at a low level for the year, and further improvement in fundamentals is expected to further boost the rebound of the sector. Companies with good performance elasticity in the thermal coal industry and low P/B ratios in the metallurgical coal sector are still recommended.