The New Hope Corporation Limited (ASX: NHC) share price had a tough run on the market today.
New Hope shares sunk 9% to finish at $5.84. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) closed 1.84% in the red.
Let’s take a look at what weighed on this ASX 200 coal share today.
What’s going on?
New Hope was not the only ASX 200 coal share to decline today. Whitehaven Coal Ltd (ASX: WHC) shares lost nearly 7%, while Coronado Global Resources Inc (ASX: CRN) shares slipped more than 2%.
A decline in the coal price may have weighed on coal explorers today. The Sydney Morning Herald reported coal prices fell 12.7%, impacting the coal sector.
Asia-Pacific coal, the leading thermal coal index, dropped 10% to its lowest level in 9 months this week, Montel Group reported.
New Hope has not reported any price-sensitive news to the market this year. However, in 2022, New Hope delivered a record return to shareholders on the back of “record coal prices”.
The Federal Government’s office of the chief economist is predicting the metallurgical coal price to fall from US$404 a tonne in FY22 to US$262 in FY23.
However, thermal coal prices are forecast to grow from US$245 a tonne in FY22 to US$360 a tonne in FY24.
New Hope is predicted to pay the highest dividend yield of any ASX 200 share in FY24. Consensus estimates tip a dividend yield of 19.5%, my Foolish colleague James reported this week.
Morgans is tipping an 80 cent per share dividend yield in 2024, while Citi analysts predict the dividend could be a whopping $1.93 a share.
New Hope share price snapshot
The New Hope Corporation share price has fallen nearly 160% in the last year.
New Hope has a market capitalisation of more than $5 billion based on the current share price.
The post Why did ASX 200 coal share New Hope Corporation sink 9% today? appeared first on The Motley Fool Australia.
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More reading
- Guess which ASX 200 share is projected to pay the biggest dividend yield in FY24?
- Here are the top 10 ASX 200 shares today
- Can ASX 200 coal shares really deliver dividend yields of over 10% in FY24?
- ASX 200 to yield 4.4% in 2023. These 2 dividend shares pay more than twice that
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Monica O’Shea 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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