Tenaga climbs on expectations of tariff hike

KUALA LUMPUR: Shares of TENAGA NASIONAL BHD [] rose to a high of RM6.18 in morning trade on Wednesday, May 18 on expectations of a tariff hike.

At 11.17am, it was up 17 sen to RM6.15 with 3.00 million shares done.

The FBM KLCI rose 5.35 points to 1,541.62. Turnover was 366.04 million shares done valued at RM708.63 million. There were 271 gainers, 303 losers and 262 stocks unchanged.

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 feed-in tariff (FiT) scheme.

“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,” said OSK Research. (theedgemalaysia.com)