KUALA LUMPUR: Shares of Tenaga Nasional Bhd
(TNB) fell to an intra-day low of RM13.44 on negative news about its 70% owned power plant and talk of the government studying a proposal to liberalise the retail energy sector.
At 3.15pm, it was down 64 sen to RM13.50, off the earlier low of RM13.44, with 5.34 million shares traded. The fall in the power giant's share price also weighed on the FBM KLCI.
The KLCI was down 8.25 points of 0.49% to 1,679.23. Turnover was 1.78 billion shares valued at RM1.01bil. There were 279 gainers, 486 lowers and 393 counters unchanged.
The decline of 64 sen in its share price saw RM3.63bil erased from the market capitalisation, reducing it to RM78.886bil. Its paid-up is 5.686 billion shares.
The share price had rallied in recent days also, rising to a high of RM14.28 on Thursday.
A news portal reported the Energy, Science, Technology, Environment and Climate Change Ministry as saying a study is being conducted to determine whether the liberalisation of the electricity retail sector will indeed result in more competitive tariffs for consumers.
"With regard to this, the ministry is expected to table its findings to the cabinet in the near future to help determine the future of the electricity supply industry," the ministry was reported as stating in a parliamentary written reply dated July 3.
Meanwhile, Malaysian Rating Corporation (MARC) said the commercial operation date (COD) of Jimah East Power Sdn Bhd's (JEP) two 1,000MW ultra-supercritical coal-fired power plant in Jimah, Negeri Sembilan has been delayed.
The power plant’s COD was originally scheduled on June 15, 2019 but it has now been delayed owing to some defects detected at the high-pressure turbine during the project commissioning phase.
MARC said on Friday it was informed that remedial works were in progress and JEP expected the power plant to achieve COD within the next three months.
TNB owns 70% of JEP while Mitsui & Co. Ltd and The Chugoku Electric Power Co. Ltd hold 15% each.