Singapore - Coal equities in Association of South-East Asian Nations (ASEAN) countries are forecast to outperform the broader marker longer than expected, a Goldman Sachs report said on Monday.

Robust demand from emerging markets, supply constraints and coal's relative attractiveness to oil were cited as the basis for further upsides in thermal spot prices in 2008 and 2009.

"We believe that the positive coal fundamentals and improved pricing in the export and domestic markets have placed ASEAN coal companies on the cusp of an earnings acceleration cycle," the report said.

Indonesian coal producers are expected to be the major beneficiaries of the thermal coal price rally with 74 per cent of their coal production for export.

"Given the high contract exposure of Indonesian coal producers, we believe the peak of the earnings and pricing cycle will coincide in 2009, and these peak levels will provide downside support for any correction in spot prices when supply constraints in Australia start to ease," Goldman Sachs said. (dpa)