Hot Stock Tenaga up 30 sen after chief says 1MDB power plant buy to have 'positive impact'

by **Cals** Tue 23 Jun 2015, 01:19

Hot Stock
Tenaga up 30 sen after chief says 1MDB power plant buy to have 'positive impact'

KUALA LUMPUR (June 22): Tenaga Nasional Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose as much as 2% to RM13.16 after the company's chief said its planned acquisition of a 70% stake in 1Malaysia Development Bhd's power plant
in Negeri Sembilan would bode well for the buyer's financials.
Last Friday, state-controlled utility Tenaga (fundamental: 1.3; valuation: 1.8) president and chief executive officer Datuk Seri Azman Mohd said in a statement additional electricity output from the greenfield plant known as Project 3B would have a positive impact on the company.
Today, Tenaga shares pared gains after reaching its highest so far at RM13.16.
At 9.43am, the stock was traded at RM13.14 with some two million shares transacted. Tenaga was the second-largest gainer on the bourse.
From a technical viewpoint, AllianceDBS Research Sdn Bhd analyst Teoh Chang Yeow said Tenaga shares
might face resistance at RM13.30 in the next few days.
Surpassing this resistance could lead to further gains in Tenaga shares, Teoh wrote in a note.
“Following the up close on June 19, the stock is expected to move between RM12.30 and RM13.30 in the coming few days. A crossover of RM13.30 should see further price rise to the next overhead resistance zone RM13.50 - RM13.80.
“However, a fall below RM12.30 would put pressure on the stock down to the subsequent support zone, RM11.90 - RM12.20,” it said.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)