Coal stocks top performers in US equities, Jan. 3-7

The first trading week of the New Year saw the Dow Jones Industrial Average edge up 97.25 points or 0.8% to 11,674.76 while the S&P 500 index rose 13.86 points or 1.1% to 1,271.50. The Nasdaq Composite was up 50.3 points or 1.9% to 2,703.17. Twenty-seven companies on the New York Stock Exchange reached new 52-week highs with none sinking to new 52-week lows.

Potash Corporation of Saskatchewan topped the list of value gains with an advance of US$12.09 per share to close the Jan. 3-7 trading week at US$166.92 per share, on no news. The potash giant will release fourth quarter and year-end earnings on Jan. 27.

Colder temperatures and floods in Queensland that continue to wreak havoc on the industry in Australia, pushed up the shares of many coal producers with operations in North America. Central Appalachian coal producer Alpha Natural Resources claimed the second-highest value gain during the trading week with an advance of US$5.22 per share to US$65.25. Patriot Coal, with mining operations in Appalachia and the Illinois Basin, claimed the third spot with an increase of US$3.82 to US$23.19. Massey Energy rose US$2.46 to US$56.11, despite news Jan 5 of a 1.4- million ton shortfall in fourth quarter coal shipments largely due to lower than anticipated production, inconsistent rail service and delays of export shipments at the ports. Consol Energy, the largest producer of high-Btu bituminous coal in the United States, gained US$2.16 to US$50.90.

With rising demand from China supporting iron ore prices, Cliffs Natural Resources performed well during the trading week, climbing US$3.32 to US$81.33 per share. Reuters reported that China’s iron ore imports in December increased 1.2% over November to 58.08 million tonnes, the highest increase in nine months. “Chinese steel mills, the biggest buyers of the world’s iron ore, have been replenishing stocks of the steelmaking raw material ahead of the Lunar New Year in February, with stronger steel prices also supporting the buying binge,” the news agency reported on Jan. 10.

On the negative side of the ledger, the Philadelphia Gold and Silver index fell 15.28 points or 6.7% to 211.30 and many precious metals companies fell with it. Agnico-Eagle Mines dropped US$6.27 to US$70.43, while Silver Wheaton fell US$5.53 to US$33.51.