Hong Kong Stock Market Movement | Coal stocks extend gains in the morning, Strait of Hormuz remains closed, market energy valuation expectations further upward

CITIC Finance APP learned that coal stocks extended their gains in the morning. As of the latest report, Mongolia Jiao Coal (00975) rose 4.06% to HKD 11.79; China Coal Energy (01898) increased 3.43% to HKD 13.86; China Shenhua (01088) gained 3.33% to HKD 47.12; Yanzhou Coal Australia (03668) rose 2.99% to HKD 40.

On the news front, with the sudden escalation of military conflicts in the Middle East, the global energy supply chain is facing severe challenges. The price of thermal coal has surged to its highest level in over a year. Analysts point out that this is the largest external shock to the global coal market since the Russia-Ukraine conflict in 2022. Considering the current energy gap is difficult to fill in the short term, market bullish sentiment remains strong. It is expected that high volatility and high prices will continue until the situation clarifies.

Tosho Futures released a research report stating that the continued closure of the Strait of Hormuz has further raised market expectations for energy valuations. The duration of the Middle East conflict remains the biggest uncertainty. Currently, overseas coal prices have been priced in about a month of blockade, with attention on further developments. Coal prices are externally strong but internally weak, with long- and medium-term valuations still at risk of rising. In the short term, a volatile market is expected.