Tenaga by far the biggest loser of the current market down turn

From the Edge:

KUALA LUMPUR (Aug 10): Tenaga Nasional Bhd ( Financial Dashboard)'s (TNB) shares continued to decline for the third straight day, dipping as much as 4.6% in early trading, in line with the weak broader market.

As at 3.20pm, the stock shed 46 sen or 4.04% to RM10.94. A total of 8.01 million shares were traded. It hit an intraday low of RM10.88, emerging as one of the top decliners on Bursa Malaysia today.

Last Thursday, the stock posted its largest decline in a year, dropping 4.42% as the political ramifications around the 1Malaysia Development Bhd (1MDB) saga weighed down on the stock.

TNB shares have lost 13.9% since mid-July, when the national utility announced its non-binding proposal to acquire 1MDB’s remaining power assets, raising bailout concerns.

It seems the market has more or less decided that Tenaga is in trouble.  I wonder what kind of rumors are going around for this stock.

What kind offer has it bid for 1MDB assets?

If you ask me, it is buy on the news of the asset purchase when it comes out.  Especially if the stock the assets purchased are reasonably priced.  If they bid 15 billion for the assets or below, I'd be a buyer of Tenaga.

People have to keep in mind.  Energy prices are quite low, and the country has a huge population which will keep demand robust even after a decline in output due to GST.  Excess capacity is not the problem which if it was, I would be a seller of Tenaga.