Why are these ASX coal shares having a top run today?

Newcastle coal futures are up on Thursday.
The post Why are these ASX coal shares having a top run today? appeared first on The Motley Fool Australia. –

ASX coal shares are outperforming on Thursday amid surging energy commodity prices.

In fact, the S&P/ASX 200 Energy Index (ASX: XEJ) is one of the best-performing sectors today. It’s recording a slump of just 0.8%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped 1.23% on Thursday. The index is being weighed down by the tech sector’s whopping 7.8% tumble.

Let’s take a closer look at why most ASX coal shares are buoyed amid a sea of red today.

Why are ASX coal shares outperforming?

Shares in two of the biggest ASX-listed coal companies are doing better than the broader market today.

Right now, the Yancoal Australia Ltd (ASX: YAL) share price is leading. It’s recording a gain of 0.75% and trading at $5.38 apiece.

Meanwhile, shares in ASX 200 energy giant Whitehaven Coal Ltd (ASX: WHC) are flat after surging to 2.6% earlier today. At the time of writing, they’re trading at $4.98.

The coal producers’ shares are likely benefiting from the price of the energy commodity.

Newcastle coal futures are trading 1.99% higher at US$385 a tonne on Thursday afternoon. That’s the highest it’s been since it came off its all-time high of US$415 per tonne in March.

It comes as The Australian reports energy experts have noticed electricity generators are finding it harder to source coal in New South Wales lately.

That’s likely a sign of surging demand and, potentially, an ongoing result of sanctions placed on Russia – a major coal producer – following its invasion of Ukraine.

The price of coal could also be weighing on Australian energy prices.

The average energy spot price in Queensland has more than doubled in 2022 – averaging $144 per megawatt hour for the year so far – compared to 2021’s average of $61.81.

Victoria’s average energy spot price is fairing best this year, having risen around 37% compared to its 2021 average.

The post Why are these ASX coal shares having a top run today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Here are the top 10 ASX shares today
3 ASX 200 energy shares storming to new 52-week highs today
Why did ASX coal shares having such a stellar run on Thursday?
Here are the top 10 ASX shares today
How might the election outcome impact the outlook for ASX energy shares?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!