During the week ending September 4, the VanEck Vectors Coal ETF (KOL) lost 5.2% as doubts over China’s growth prospects continued to hamper the ETF. Chinese stocks account for 25% of the ETF’s total holdings. Moreover, China, being the biggest importer and consumer of coal in the world, drives sentiments in the global coal industry.
During the same week, the broad-based SPDR S&P500 ETF (SPY) lost 5.2% as weak Chinese economic data sparked a sell-off in global equity markets.
Cloud Peak Energy (CLD) fell 11.7% during the September 4 week to close at $3.86. The stock had rallied the previous week. Last week’s fall represents a correction.
Consol Energy (CNX) continued to experience pressure, as both coal and natural gas prices have remained weak. The stock lost 6.9% to end the week at $13.4.
Peabody Energy (BTU) dropped 4.6% to end the week at $2.29.