Quick take: Tenaga rebounds, minimal impact from retail reforms

KUALA LUMPUR: Shares of Tenaga Nasional Bhd (TNB) rebounded on Monday as analysts viewed that retail market reforms, if any, would have minimal impact on the power giant.

At 3pm, TNB's share price was up 22 sen to RM13.80.  There were 1.55 million shares done.

The FBM KLCI was down 4.69 points or 0.28% to 1,677.84. Turnover was 1.52 billion shares valued at RM946.29mil. There were 198 gainers, 566 losers and 360 counters unchanged.
Last Friday, TNB's share price fell 54 sen to RM13.60.

UOB Kay Hian Malaysia Research expects minimal impact on TNB if the government liberalises the electricity retail sector.

It said the government was looking into the reforms which will result in a more competitive tariff for consumers. 

However, as the retail segment accounts for only 2% of TNB’s revenue, the sharp 4% share price retracement last Friday was unwarranted. 

“More importantly, the Incentive Based Regulation (IBR) is based on regulated asset. The retail segment is asset light and as such, TNB earns minimal profits as Peninsular Malaysia’s only retail electricity provider,” it said. 

To recap, Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said a study is being conducted to determine whether the liberalisation of the electricity retail sector will result in more competitive tariffs for consumers.