KUALA LUMPUR: Shares of TENAGA NASIONAL BHD [] advanced in early trade on Friday, Jan 21 as it managed to rebound after falling to as low of RM6.43.
At 10.05am, it was up three sen to RM6.52. There were 1.94 million shares done at prices ranging from RM6.43 to RM6.52.
However, the FBM KLCI was down 13.02 points to 1,553.49. Turnover 2qw 400.51 million shares done valued at RM497.31 million. Declining counters battered advancers more than four to one, with 466 losers to 104 gainers.
OSK Research said Tenaga's 1QFY11 core net profit came in above its forecast and consensus as it expected the subsequent quarters to be poorer due to rising coal prices.
'While demand growth still looks reasonable at above 4.5% and coal prices may retreat after February, the lack of transparency in terms of a tariff hike to cover the high coal prices may likely dampen demand for Tenaga's shares despite the 98% q-o-q profit jump,' it said on Friday, Jan 21.
OSK Research said nonetheless, based on its longer term valuation and view, Tenaga remains a Buy at RM6.47, with longer term expectations for an 8% tariff hike and its sensitivity of a 9.5% profit jump for every 1% increase in tariff.
At 10.05am, it was up three sen to RM6.52. There were 1.94 million shares done at prices ranging from RM6.43 to RM6.52.
However, the FBM KLCI was down 13.02 points to 1,553.49. Turnover 2qw 400.51 million shares done valued at RM497.31 million. Declining counters battered advancers more than four to one, with 466 losers to 104 gainers.
OSK Research said Tenaga's 1QFY11 core net profit came in above its forecast and consensus as it expected the subsequent quarters to be poorer due to rising coal prices.
'While demand growth still looks reasonable at above 4.5% and coal prices may retreat after February, the lack of transparency in terms of a tariff hike to cover the high coal prices may likely dampen demand for Tenaga's shares despite the 98% q-o-q profit jump,' it said on Friday, Jan 21.
OSK Research said nonetheless, based on its longer term valuation and view, Tenaga remains a Buy at RM6.47, with longer term expectations for an 8% tariff hike and its sensitivity of a 9.5% profit jump for every 1% increase in tariff.
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