Whitehaven share price rallies to new all-time high on Thursday

The Whitehaven Coal Ltd (ASX: WHC) share price is rallying yet again to another all-time high today.

At the time of writing, shares in the coal producer are up 5.19% to a record high of $8.92.

This means the share has risen 35% in the past month, defying the market sell-off that occurred on Wednesday.

What’s causing Whitehaven Coal shares to steam ahead?

Investors are bidding up the Whitehaven share price as the price of coal continues to accelerate.

According to Trading Economics, Newcastle coal futures are fetching US$444 a tonne, up 1.1% from their previous close.

This is being exacerbated by the war in Ukraine as Europe and other countries race to get their hands on reliable sources of energy.

Several nations have been restarting operations at their respective coal plants ahead of the European winter.

In addition, India has boosted imports as coal inventories are at the lowest pre-summer levels since 2013.

To make matters worse, electricity demand is rising at the fastest pace in almost four decades in India.

Similarly, other ASX coal shares are also on the move today.

The New Hope Corporation Limited (ASX: NHC) share price is up 5.65% to $5.80, while TerraCom Ltd (ASX: TER) is travelling 6.86% higher to $1.09.

Coal prices are expected to remain elevated for the foreseeable future on the back of persistent supply disruptions.

A recent IEA report anticipates that global coal demand will return to its all-time high this year. This is being driven by higher natural gas prices, which have intensified gas-to-coal switching in many countries.

Whitehaven share price snapshot

As coal prices surge to near record highs, the Whitehaven share price has leapt by more than 240% in 2022.

In comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) sector has lifted by almost 40% over the same timeframe.

According to ANZ Share Investing, Macquarie raised its 12-month price target by 9% to $10 per share. Based on where Whitehaven Coal shares trade today, this implies an upside of around 12%.

Whitehaven commands a market capitalisation of approximately $8.11 billion.

The post Whitehaven share price rallies to new all-time high on Thursday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Clover, Select Harvests, Whitehaven Coal, and Woodside shares are storming higher
• How this fundie is beating the ASX 300 without fossil fuels
• Here are the top 10 ASX 200 shares today
• Why did Macquarie just upgrade its target for Whitehaven shares by 9%?
• Why Grange, Link, Ramsay, and Whitehaven Coal shares are dropping

Motley Fool contributor Aaron Teboneras 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4PeyoEO