KUALA LUMPUR: TENAGA NASIONAL BHD [] share price declined in early trade on Monday, June 21 after having surged as much as 45 sen to RM8.80 last Friday.
The surge was due to an announcement from its chief executive officer Datuk Seri Che Khalib Mohamad Noh that the power giant would bid for a RM7 billion government project to upgrade power plants as the economic recovery boosts demand.
At 9.05am Monday, Tenaga lost 16 sen to RM8.64 with 69,600 shares traded.
Phillip Capital Management Sdn Bhd in an early report on Friday had said it was upbeat about the prospects for Tenaga. It said the power giant, with a spare capacity of 46%, will continue to benefit from the under-utilised capacity to ride the electricity demand growth over the next few years.
"There is little fear of gas subsidy removal as it will be reflected in tariff adjustment through a bi-annual review formula established in 2008.
"With low foreign shareholdings, the downside is limited, but when foreigners return, we see tremendous upside in the stock. The price has already taken into account most of the negative news. We recommend Buy on Tenaga as a laggard blue chip with considerable upside," it said.
The surge was due to an announcement from its chief executive officer Datuk Seri Che Khalib Mohamad Noh that the power giant would bid for a RM7 billion government project to upgrade power plants as the economic recovery boosts demand.
At 9.05am Monday, Tenaga lost 16 sen to RM8.64 with 69,600 shares traded.
Phillip Capital Management Sdn Bhd in an early report on Friday had said it was upbeat about the prospects for Tenaga. It said the power giant, with a spare capacity of 46%, will continue to benefit from the under-utilised capacity to ride the electricity demand growth over the next few years.
"There is little fear of gas subsidy removal as it will be reflected in tariff adjustment through a bi-annual review formula established in 2008.
"With low foreign shareholdings, the downside is limited, but when foreigners return, we see tremendous upside in the stock. The price has already taken into account most of the negative news. We recommend Buy on Tenaga as a laggard blue chip with considerable upside," it said.
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