Weakening Baht and Rising Coal Price Send BANPU’s Stock 4% Higher

The share price of Banpu Public Company Limited (BANPU) rose ฿0.50/shareor 3.73%to ฿13.90/sharein the morning session of Tuesday, October 5, 2021, with a trading value of 1,721 million baht.

According to Capital Nomura Securities (CNS), BANPU is starting to reap the benefits of its business restructuring to place a greater focus on energy technology as part of the company's "Greener, Smarter Growth" strategy.

For the coal business, the market believes that the recent price increase will boost BANPU's 2021 performance, which is expected to recover to profitability of 2-3 billion baht from a loss a year earlier.

CNS estimates that the present BANPU price is still optimistic due to the baht depreciation benefit and the continued increase in coal prices, giving support level at 13.0/12.6 baht and resistance level at 13.6/13.9 baht.