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TEN electric shock N trouble??
By web aNtu
6/9/2000 4:25 am Wed
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RM1.20 plunge in Tenaga's shares yesterday a powerful no-confidence vote by
the market on the appointment of Jamaludin Jarjis as new Tenaga chairman
The adverse stock market reaction to Tenaga shares is a powerful vote of no
confidence in Jamaludin, with Tenaga shares plunging RM1.20 yesterday,
which is Tenaga's biggest decline in two years and a 9.8 per cent dive to
RM11 - the share's biggest one-day drop since Sept 8, 1998 and the lowest
since Jan 12 this year.
Tenaga's fall alone dragged down the market's key share index by over one
per cent yesterday. The KLSE Composite Index was down 3.1 per cent, slipping
23.50 points to 743.52. Speculation of Jamaludin's appointment had already
driven down Tenaga shares, which closed 3.9 per cent lower last Friday.
There was further bad news for Tenaga yesterday when Prudential-Bache
Securities downgraded its ratings and 2000 profit forecast for Tenaga,
cutting its call on Tenaga to "accumulate" from a "strong buy", saying the
departure of executive chairman Tajuddin Ali was negative news and there was
uncertainty over the capability of Jamaludin.
The strongest objection to Jamaludin's appointment as Tenaga chairman is
that it is a political appointment, as he is not only UMNO MP for Rompin,
but Barisan Backbenchers' Club Chairman and Chairman of the Public Accounts
Committee in Parliament.
With his political responsibilities and commitments, there can be no public
confidence in Jamaludin's appointment as Tenaga Chairman as nobody would
believe that he would be able to put public interest above political or
As Jamaludin's appointment as Chairman of one of the biggest state-run
utilities companies is completely incompatible with his position as UMNO
MP, BBC Chairman and PAC Chairman, Jamaluddin must choose one or the other
- and if he decides to continue as Tenaga Chairman, he must relinquish
his three parliamentary positions, resigning not only as Chairman of PAC
and BBC, but also as MP and retire from active UMNO politics.
KUALA LUMPUR, Sept 5 Asia Pulse - Share prices on the Kuala Lumpur Stock
Exchange (KLSE) reversed yesterday's downtrend and ended higher today on a
technical rebound, a dealer said.
"Today's market rebound is technical based as trading volume was quite thin
today," the dealer added.
The benchmark Composite Index closed 8.06 points higher at 751.58, the Emas
Index surged 1.74 points to 188.53, the Second Board Index added 0.53 of a
point to 195.70, the Technology Index increased 1.29 points to 97.56 and the
Industrial Index jumped 18.15 points to 1,390.21.
Gainers led losers 384 to 208, while 174 counters were unchanged and 233
Total volume slipped to 73.596 million shares valued at RM248.861 million,
from 104.444 million shares worth RM413.925 million on Monday.