Tenaga's slump hits blue chips

KUALA LUMPUR: Shares of Tenaga Nasional fell to a low of RM14.10 on Tuesday, dragging the FBM KLCI deep into the red amid a gloomy market outook, weighed by the cautious Asian markets and ahead of the Budget 2019 on Nov 2.

At 11.58am, the power giant was down 34 sen to RM14.16. There were 2.28 million shares done.

The KLCI fell 14.51 points or 0.84% to 1,707.96. Turnover was 966.41 million shares valued at RM776.48mil. There were 145 gainers, 530 losers and 286 counters unchanged.

Maybank Investment Bank Research said recent quotes from the Minister of Energy, Science, Technology, Environment, and Climate Change Yeo Bee Yin reaffirm its views that the fuel-cost pass-through mechanism remains relevant.

It also said that the carbon tax for power generation was not in the immediate pipeline and the renewable push will involve more creative methods rather than outright subsidies. 

“Overall, we are encouraged by the minister’s relatively balanced messages. Maintain Hold with an unchanged RM16 target price,” it said.

Analyst Reports , Markets