Shares of Singapore-listed coal miner Straits Asia Resources (STRL.SI) fell as much as 4.5% on Wednesday as falling oil prices triggered investors to take profits, traders said.
At 10:55 a.m., shares of Straits Asia were 4.2% lower at $2.76 with over 4.4 million shares changing hands.
At 10:55 a.m., shares of Straits Asia were 4.2% lower at $2.76 with over 4.4 million shares changing hands.
“Falling oil prices could be one of the catalysts for profit taking in Straits Asia. Moreover the company’s share price has run up a lot in the last week,” said a local dealer.
Straits Asia shares had risen about 12% in the last two weeks to close at $2.88 on Tuesday.
Coal prices tend to track oil prices, as the two are seen as substitutes for one another, an analyst said.
“Even though the effect may not be so immediate, but falling coal prices could also hurt Straits Asia’s earnings,” said a trader.
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