Wednesday, October 24, 2018
Tenaga: Testing Long-term Uptrend Line
In the current market selldown, Tenaga was not spared. It has dropped from about RM15.50 in early October to an intraday low of RM13.80 on October 11. It even closed at RM14.00 yesterday. It is now trading not far from the long-term uptrend line, SS.
Tenaga is our sole power distributor in Peninsular Malaysia and Sabah. It is also the biggest power producer in the country. Thus it will benefit from continued demand for power in the country.
Tenaga has been valued above RM17.00 by many brokers. For example, Kenanga valued it at RM17.90, AMInvest valued it at RM17.25. HLInvest values it at RM17.50.
Based on good valuation and recent sharp price decline, I believe Tenaga is at a good price level to consider for entry. Good luck!
Chart: Tenaga's monthly chart as at Oct 23, 2018 (Source: Malaysiastock.biz)