Monday, December 14, 2015

"Paris climate pact sinks coal stocks, lifts renewable energy" (FSLR; TSL; BTU; KOL)

China's Trina, which during the heyday we used to call the Queen of the Solars, got a buyout offer from management and is up 11.73% at $10.67 helping juice the sector. First Solar is up 5.69% at $58.40.

In the coal group the largest, Peabody, is down 13.27% at $7.65, more on debt worries than COP21 kneejerk. The coal ETF is down a considerably smaller 1.56% at $6.30.

As noted re: the solars last Thursday, "The next phase will be a pop when they announce a deal and then sadness when understanding of the deal begins to permeate."

From the Thompson Reuters Trust:

 iShares Clean Energy ETF, MAC Global Solar Energy Index rise
* Dow Jones U.S. Oil & Gas Index falls before gaining
* Peabody coal down more than 10 percent
* Some investors caution against rushing in to buy "green" stocks (Adds comments, updates prices)

By Sudip Kar-Gupta, Annabella Nielsen and Swetha Gopinath

Dec 14 (Reuters) - A landmark deal to curb global warming dented shares of fossil fuel companies and lifted renewable energy stocks on Monday, although some price swings were muted by the non-binding nature of the pact.

The deal forged at the Paris climate summit is widely seen as the most important climate agreement since the 1997 Kyoto Protocol. It commits rich and poor nations to rein in rising carbon levels and seeks to eliminate net greenhouse gas emissions from human activity this century.

Renewable energy companies are expected to see big upticks in investments to develop new technologies in coming years, while coal and oil companies may see tougher regulations.

"This deal will help boost the mid- to long-term fundamentals in renewable energy generation, especially solar, while making any further investments in fossil fuels increasingly vulnerable," said portfolio manager Thiemo Lang of Zurich's RobecoSAM, which owns solar stocks.

The MAC Global Solar Energy Index was up 4.5 percent. The iShares Global Clean Energy exchange-traded fund , which allows investors to trade a basket of renewable energy stocks, rose 1.4 percent.

The U.S. Oil & Gas Index fell 1 percent before reversing losses, and was up 0.2 percent as oil edged higher after plumbing the lowest levels in about seven years.

Shares of companies that produce coal, seen as dirtier than oil and gas, sank the most. Peabody Energy Corp dropped 12.6 percent, and Consol Energy Inc fell 3.3 percent.

Solar companies welcomed the pact. Their shares have been hammered this year on fears that low oil prices would sap demand for renewable energy, even though the business often relies on government incentives....MORE