KLCI ends lower, dragged down by TNB after power tariff revision

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KUALA LUMPUR (Feb 11): The FBM KLCI closed 0.67% or 12.17 points lower today, dragged down by Tenaga Nasional Bhd (TNB) whose share price fell 3.1% following the announcement of a revised electricity tariff.

Earlier, Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili announced that electricity tariff will be reduced with the imbalance cost pass through (ICPT) of 5.8% or 2.25 sen per kWh for consumers in Peninsular Malaysia, from March 1 until June 30, 2015.

TNB's share price fell 3.1% or 46 sen to close at RM14.40 today, with 29 million shares changing hands. Its market capitalisation stood at RM78.11 million.

At the closing bell, the benchmark index slipped 0.67% or 12.17 points to end the day at 1,798.95. It climbed to an intra-day high of 1,812.08 and an intra-day low of 1,790.8.

The local bourse saw 2.19 billion shares worth some RM2.365 billion traded today, with losers leading gainers at 508 over 321. About 313 counters remained unchanged.

Stocks like TNB, Petronas Dagangan Bhd and Petronas Gas Bhd were among the underperformers.

Etiqa Insurance & Takaful Bhd head of research Chris Eng said the utility giant had led to the drop in FBM KLCI, as the blue-chip stock contributes a significant portion to the local trading activity.

“Generally, there are more greens (gains) than reds (losses) in the region today,” he noted, adding that investors are waiting for the restructuring exercise from the Greece government," he told theedgemarkets.com.

Asia Bioenergy Technologies Bhd was the most actively traded stock today. The counter closed 6.9% lower at 13.5 sen.

Top gainers included Allianz Malaysia Bhd, Heveaboard Bhd, Latitude Tree Holdings Bhd, Batu Kawan Bhd, Syarikat Takaful Malaysia Bhd, Lii Hen Industries Bhd, V.S. Industry Bhd and Hartalega Holdings Bhd.

Top decliners were Tasek Corp Bhd, Public Bank Bhd and Panasonic Manufacturing Malaysia Bhd.

The ringgit continued to weaken to 3.5993 versus a strengthening US dollar. For comparison, the local currency has also weakened to 2.6497 against the Singapore dollar.

Most Asian stocks rose today with Shanghai Composite Index climbing 0.51%, while Singapore’s Strait Times Index rose 0.3%.

Reuters reported that Asian stock markets were subdued today, while major currencies barely budged as looming euro zone meetings to discuss the Greek debt crisis overshadowed a firmer finish on Wall Street.

It added that Brent crude held steady above US$56 a barrel today, and US crude rose briefly more than US$1 after a smaller-than-expected rise in US crude stocks was viewed by some as a sign that a supply glut was starting to abate.