KLCI gains, powered by Tenaga

KLCI gains, powered by Tenaga
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KUALA LUMPUR (Nov 23): The FBM KLCI rose 9.01 points or 0.54% today, mainly on Tenaga Nasional Bhd share gains, amid speculation 1Malaysia Development Bhd (1MDB) may sell its power assets to foreign bidders.

1MDB's power assets are parked under Edra Global Energy Bhd.

Analysts and fund managers said Tenaga gained as investors could have perceived such updates as good news for Tenaga, amid concerns Tenaga might overpay for state-owned 1MDB's power assets to bailout the company.
“There was already buying in Tenaga since last week. People are expecting either Tenaga would not win the bid, or that it would get Edra at a cheaper price — both of which are good for Tenaga,” Areca Capital Sdn Bhd's chief executive officer Danny Wong Teck Meng told theedgemarkets.com

At 5pm, the KLCI closed at 1,670.9 points. Tenaga added 30 sen or 2.3% to RM13.42, to become Bursa Malaysia's fifth-largest gainer.

Across Bursa Malaysia, there were 2.95 billion shares, collectively valued at RM1.93 billion. Gainers edged decliners at 449 and 474 respectively.

Genetec Technology Bhd was the most actively-traded counter today, while leading decliners included Panasonic Manufacturing Malaysia Bhd and United Plantations Bhd.

Among top gainers, Chee Wah Corp Bhd rose 19.5 sen or 22% to RM1.10. The stock rose ahead of the Nov 30 ex-date for the stationery manufacturer's proposed first and final dividend of two sen a share.

Across Asian share markets today, Hong Kong’s Hang Seng fell 0.39%, while South Korea’s Kospi gained 0.7%. Japan markets were closed for holiday.

Reuters reported the euro sagged to a seven-month trough on Monday, as the prospect of more policy easing in Europe benefited the U.S. dollar, while activity in Asian shares was crimped by a holiday in Japan.

(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.)