Midday Market Tenaga charges, sends KLCI to new record high

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 03 December 2013 12:58
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KUALA LUMPUR (Dec 3): The benchmark stock index FBMKLCI ended the
morning session at a record high, driven mainly by gains made by Tenaga
Nasional Bhd that is raising electricity rates next year.
The KLCI hit a record high of 1,840.12 earlier in the morning session. This was
propelled by a share price jump in state-controlled TNB, which is a major
influential constituent of the key index.
The previous all-time high of the key index at 1,818.93 was registered on Oct
24 this year.
In morning trades, the share price of Tenaga soared to a high of RM12.60, a
jump of RM2.17 or 27.4% over yesterday’s last traded price of RM9.89 after
upgrades by analysts today as they expect earnings to be raised. Tenaga’s
warrants also rose in tandem.
But at 12.30 pm lunch break, the KLCI gave up some gains as Tenaga trimmed
its climb. The KLCI was up 9.91 points or 0.55% at 1828.06, while Tenaga
ended at RM11.18, up RM1.29 or 13% on trades of some 21.8 million shares.
Yesterday, Energy Minister Datuk Seri Maximus Ongkil announced that
electricity rates across the country, with the exception of Sarawak, will rise by
15 percent on average effective Jan. 1.
In morning notes, analysts generally expected the KLCI to hit a new record
high.
BIMB Securities said: “We expect the index to see another record high today as
buying interests will be centred on Tenaga.”
Hong Leong Investment Bank sees immediate resistances are 1826-1840 whilst supports fall on 1790-1800.
At noon on the bourse, losers led gainers 367 to 257.
Turnover stood at some 575 million shares valued at some RM809 million.