Coal stocks in Hong Kong experienced a broad decline during the trading session. At the time of writing, Kinetic Dev (01277) dropped 8.55% to HK$2.13, China Coal (01898) fell 5.45% to HK$13.53, Yankuang Energy (01171) declined 2.79% to HK$15.66, and China Shenhua (01088) decreased 2.09% to HK$46.84. The market movement follows news that the ceasefire between the US and Iran remains temporarily in place. Pakistan's Foreign Minister expressed confidence that mediation efforts could lead to "significant progress" in resolving the conflict. According to analysis from Founders Securities, the coal sector currently benefits from investment themes related to energy crises driven by geopolitical tensions. Should the US-Iran conflict ease quickly with only a brief disruption to key shipping routes, the potential for coal price increases would be relatively limited. However, if disruptions persist or become normalized, the overall price level for coal is expected to rise, reinforcing its role as a stabilizing force in the energy sector. Meanwhile, CITIC Securities noted that by 2025, continued declines in coal prices are likely to lead to lower profitability and significantly reduced free cash flow for companies in the sector. However, some firms have already shown quarter-on-quarter performance improvements in the first quarter of 2026. The institution remains optimistic about coal price performance in the second quarter, pointing out that even if Middle East tensions ease, restoring energy supplies will take time. Combined with climatic factors, domestic and international coal prices may align in the mid-to-late second quarter, with the effects of rising coal and chemical prices expected to become more apparent during this period.