TNB falls to 52-week low

PETALING JAYA: Shares of Tenaga Nasional Bhd (TNB) plunged to the lowest in more than 52 weeks, as the ringgit weakened past 3.90 to the US dollar and the local bourse tumbled by more than 30 points.

TNB, which has also been weighed down by concerns about its purchase of power assets from 1Malaysia Development Bhd (1MDB), tumbled to its intra-day low of RM11.26 in early trade.

However, it managed to recoup some of its losses and ended yesterday down 40 sen, or 3.1%, to RM11.38, giving the power giant a market capitalisation of RM64.22bil.

The utility giant has lost more than RM16.8bil in market cap since May, as its share price fell from RM14.36 on May 1 to RM11.38.

The fall in its share price erased 3.77 points from the FTSE Bursa Malaysia KL Composite Index.

TNB was once the most valuable company on Bursa Malaysia with a market cap of RM85.2bil. Year-to-date, TNB is down 17.54%.

At the last traded price of RM11.38, it is trading at a price-to-earnings ratio of 9.9 times.

The ringgit fell to 3.9125 against the US dollar at 5pm – its weakest since Sept 2, 1998, a day before the Government pegged the ringgit at 3.8000. Malaysia lifted the peg in 2005.

Shares of TNB have been under pressure, as investors appeared to take a cautious stance on its plan to buy the power assets of Edra Global Energy Bhd, the power company arm of 1MDB.