Singapore Coal Sector

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  • #14839

    Questions

    Are you able to comment where Coal energy currently stands against the other potential type of energy? what is the possibility of Coal energy losing steam against renewable energy?

     

    – Asked by participant during Weekly Market Outlook (19 Mar 2018)

    #14840

    Research Department

    Thank you for your question!

    Critical to remember that renewables are peaking intermittent power. Wind and sunlight are not constant throughout the day. Coal or thermal power are base load power. This provides consistent base of power or electricity to users. Untilrenewable energy can be stored cheaply, it can never fully replace coal base load. Only gas powered plants if considered renewablecan be base power plants.

    – Chen Guangzhi, Investment Analyst

    #14853

    Questions

    On Coal sector, the growth prospect is not reflected in the share price of coal-related counters. Your comment, please.

     

    – Asked by a participant during Weekly Market Outlook (2 Apr 2018)

    #14854

    Research Department

    Thank you for your question!

    At this juncture, coal price (HBA) is trading at close to 6-year high, hence, investors have concerns on price correction. Meanwhile, the recent price cap initiated by the authority in Indonesia led to some negative sentiments. However, the growths of these two counters are mainly driven by the ramp-up of production. Antoher catalyst we can look forward to is the potential M&As in the near term since both companies issued substantial amount worth of notes not long ago. 

    – Chen Guangzhi, Investment Analyst

Viewing 4 posts - 1 through 4 (of 4 total)

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