KUALA LUMPUR: Shares of TENAGA NASIONAL BHD [] climbed in late afternoon on Tuesday, May 24, on hopes of a tariff increase from the government.
At 3.20pm, Tenaga was up 15 sen to RM6.37 with 6.09 million shares done, pushing the 30-stock index into positive territory.
The FBM KLCI rose a marginal 0.28 of a point to 1,529.26. Turnover was 509.51 million shares valued at RM848.24 million. The broader market showed some signs of improvement, with 312 decliners to 352 advancers.
Shares of Tenaga have been rising since late last week on expectations of a tariff increase.
Minister of Energy, Green TECHNOLOGY [] and Water, Datuk Peter Chin Fah Kui said on Monday the Cabinet was expected to decide on Wednesday, May 25 at its weekly meeting if there should be a tariff increase for TNB.
Last week, OSK Research said for TNB, there could be a small hike in electricity tariff as it needed a 1% hike to cover the Renewable Energy.
The research house said for renewable energy to be viable, the government needed to pass the proposed Renewable Energy Act (RE Act) that includes a feed-in tariff (FiT) scheme of 1% tariff hike.
'The RE Act is expected to be passed by mid-2011. The 1% tariff hike to cover the costs associated with the FiT scheme is expected to have a very minimal impact to electricity demand. FIT. So a 3-5% hike is not out of the question,' it said.
At 3.20pm, Tenaga was up 15 sen to RM6.37 with 6.09 million shares done, pushing the 30-stock index into positive territory.
The FBM KLCI rose a marginal 0.28 of a point to 1,529.26. Turnover was 509.51 million shares valued at RM848.24 million. The broader market showed some signs of improvement, with 312 decliners to 352 advancers.
Shares of Tenaga have been rising since late last week on expectations of a tariff increase.
Minister of Energy, Green TECHNOLOGY [] and Water, Datuk Peter Chin Fah Kui said on Monday the Cabinet was expected to decide on Wednesday, May 25 at its weekly meeting if there should be a tariff increase for TNB.
Last week, OSK Research said for TNB, there could be a small hike in electricity tariff as it needed a 1% hike to cover the Renewable Energy.
The research house said for renewable energy to be viable, the government needed to pass the proposed Renewable Energy Act (RE Act) that includes a feed-in tariff (FiT) scheme of 1% tariff hike.
'The RE Act is expected to be passed by mid-2011. The 1% tariff hike to cover the costs associated with the FiT scheme is expected to have a very minimal impact to electricity demand. FIT. So a 3-5% hike is not out of the question,' it said.
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