The S&P/ASX 200 Index (ASX: XJO) finished Tuesday’s trading session 0.46% lower, closing back under 7,500 points.
For most of the day, the ASX 200 was well in the green. But when the decision of the Reserve Bank of Australia (RBA) to hike the official cash rate by 0.25% came out this afternoon, markets went into a tailspin.
But that was certainly not the case with ASX 200 coal shares.
This corner of the share market was on fire today. Take the Whitehaven Coal Ltd (ASX: WHC) share price. Whitehaven shares closed up a pleasing 1.89% at $8.62 a share.
New Hope Corporation Ltd‘s (ASX: NHC) share price did even better. It ended the day 3.7% higher at $6.16 a share. Yancoal Australia Ltd (ASX: YAL) also enjoyed a nice boost, recording a happy rise of 3.51% to $6.19 a share:
ASX 200 coal shares propped up the entire energy sector today â one of only two ASX sectors to finish in the green.
Some oil shares also did quite well, including Beach Energy Ltd (ASX: BPT) which gained 2.92%. But that wasn’t the case for the largest oil producer in the ASX 200. Woodside Energy Group Ltd (ASX: WDS) only managed to close 0.31% ahead after a largely anaemic day.
Thus, it was coal shares that were really behind the energy sector’s dominance of the markets this Tuesday.
So what was going on with ASX 200 coal miners? Why did these shares defy the gloom of the broader market?
Why are coal shares smashing the ASX 200 today?
Well, it’s probably down to a relatively simple reason: coal prices themselves.
As my Fool colleague covered this afternoon, coal prices rose strongly overnight, with Coal Nymex futures up a solid 5.3% to US$157.00 a tonne.
Such a meaningful jump in the primary commodity of Whitehaven, New Hope, and Yancoal was always going to excite investors.
As such, it was no real surprise to see this sector shining out amid the sea of red that the ASX 200 gave us this afternoon.
The post Why did ASX 200 coal shares have such a top run on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- Here are the 3 most heavily traded ASX 200 shares on Tuesday
- ASX 200: Buy high and sell higher
- Why Beach Energy, Medibank, Pushpay, and Whitehaven Coal shares are rising
- Will the stock market crash in 2023?
- Better buy: Core Lithium vs Pilbara Minerals shares
Motley Fool contributor Sebastian Bowen 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.
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