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• China Shenhua Energy and Yanzhou Coal fell 1% and 2.4%, respectively
• Indonesia experienced a more significant plunge due to rising production in China
Coal miners' shares fell on Monday after pledges taken by several nations in the U.N. climate summit COP26 to reduce the fossil fuel's use.
Miners such as China Shenhua Energy and Yanzhou Coal fell 1% and 2.4% respectively in Hong Kong.
On Saturday, the last day of the COP26 summit in Glasgow, a deal was finalized targeting fossil fuel use.
"Climate activists will undoubtedly frame COP26 as failing on coal (and fossil fuels). We look past this frustration (and current energy market conditions) and see ongoing incremental consensus in the need to reduce demand for fossil fuel," said Cowen analyst John Miller, reported Reuters.
Decline in other regions
Coal stocks were down in other regions as well. The world's biggest coal exporter, Indonesia, experienced a more significant dip due to rising production in China.
No. 1 miner Bumi Resources fell 5.7% while Adaro Energy and Indika Energy declined 4.5% and 7%.
In Australia, coal miner Whitehaven Coal fell about 1.6% while New Hope declined about 1% on Monday.
The deal in the Glasgow summit pledges to reduce fossil fuel use and carbon emissions, accelerating transition to other energy sources.
Picture Credits: Reuters