KUALA LUMPUR (Oct 23): Shares in Tenaga Nasional Bhd fell as much as 34 sen or 2.34% to a three-month low of RM14.16 in early trade today, making it one of the largest decliners among FBM KLCI component stocks.

Some 2.28 million shares had been traded as at 11.59am. The group was the second largest decliner on Bursa Malaysia, with about RM1.93 billion erased from its market capitalisation.

This was despite analysts viewing the new solar energy initiatives as a potentially positive development for the company.

TA Securities analyst Kylie Chan opined that the announcement of higher rebates to producers of solar energy would not have any material impact on Tenaga's earnings.

Yesterday, Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin announced that Tenaga would now have to pay solar energy generators the same consumption tariff under the revised net energy metering (NEM) programme.

Consumers previously sold excess solar energy to Tenaga at a "displaced cost" price of 31 sen/kWh.

Meanwhile, MIDF Amanah Investment Bank Bhd Research analyst Hafriz Hezry noted that the costs are built into the tariff via the incentive-based regulation, which will limit the downside for Tenaga. He had highlighted in a note today that the group stands to gain from future solar installations via its unit G-Sparx, which will finance solar self-generation packages.

It is worth noting that Tenaga's stock has outperformed the KLCI over the last twelve months, gaining 20 sen or 1.4% compared to a 1.09% decline in the index.

Other component stocks that recorded a decline this morning were Sime Darby Bhd and CIMB Group Holdings Bhd.

At 11.49am, the KLCI was down 14.34 points or 0.83% to a near three-month low of 1,707.98 points.