TNB shares up on increased demand for electricity

Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD

Research House: Affin Hwang Capital

Price Call: BUY

Target Price: 17.50

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) shares on Bursa Malaysia rose this morning on news of an expected increase in electricity demand, moving forward.

As at 10.01 am, the counter rose eight sen to RM14.40 with 1.03 million shares changing hands.

AffinHwang Investment Bank said there could be a positive surprise in TNB's second quarter earnings, primarily due to a favourable fuel mix due to good hydro power output.

"We believe electricity demand growth could yet pick up while earnings visibility should remain strong," it said in a research note today.

The investment bank has maintained its 'buy' call on TNB with an unchanged target price of RM17.50.

- Bernama