Market Reaction to Tenaga Nasional Bhd’s Recent Developments

The Kuala Lumpur Stock Exchange (KLSE) finished the trading day on a positive note, with the benchmark index posting a new year‑high. Among the stocks that contributed to the rally, Tenaga Nasional Bhd (Ticker: 5347) stood out for its performance and the strategic developments announced during the session.

1. Market Performance

At the close, the KLSE composite index was reported at 1,676.64 points, up 5.35 points (0.32 %) from the previous session. The market volume totaled 20 billion 6730 8520 shares with a turnover of RM18 2064 1396 million. Tenaga Nasional Bhd followed the broader market trend, gaining visibility as a “heavy‑weight” performer in the utilities sector. The company’s share price, which closed at RM13.54 on 2025‑12‑21, reflected investor confidence amid the day’s positive sentiment.

2. Strategic Power Purchase Agreement (PPA) with a Solar Consortium

During the day, Citaglobal Bhd’s consortium secured a long‑term off‑taker for a 200‑megawatt (MW) solar photovoltaic project located in Pahang. The off‑taker is Tenaga Nasional Bhd, the national electric utility. The agreement, a 21‑year Power Purchase Agreement (PPA), was formally announced in a filing with Bursa Malaysia and confirmed by multiple news outlets, including The Edge Malaysia and The Star.

Key points of the PPA include:

  • Project scale: 200 MW, representing a substantial addition to Malaysia’s renewable energy portfolio.
  • Off‑taker role: Tenaga Nasional Bhd will purchase the electricity generated by the solar plant, integrating it into the national grid.
  • Consortium composition: The project is managed by a special purpose vehicle, Chereh Solar Sdn Bhd, formed on 9 October 2025. The vehicle’s shareholders comprise Masdar (49 %), Citaglobal’s subsidiary (30 %), and TIZA Global Private Limited (21 %).

The PPA not only diversifies Tenaga Nasional Bhd’s energy mix but also positions the company as a key player in Malaysia’s transition to cleaner energy sources.

3. Impact on Investor Sentiment

The announcement of the solar PPA contributed to the broader market optimism, particularly within the utilities sector. Analysts noted that Tenaga Nasional Bhd’s engagement in renewable projects aligns with government targets for renewable energy penetration, potentially enhancing the company’s long‑term growth prospects. The stock’s inclusion among the “leading heavyweights” for the day underscores market confidence in its strategic direction.

4. Broader Corporate Activity

While the solar PPA was the headline event for Tenaga Nasional Bhd, the day also saw other utilities and infrastructure companies report significant contracts. Notably, MN Holdings Bhd’s consortium secured a RM177.36 million submarine cable upgrade contract from Tenaga Nasional Bhd, highlighting the utility’s ongoing investment in grid infrastructure. These developments collectively illustrate a period of active capital allocation and strategic partnerships within Malaysia’s energy and utilities sector.

5. Conclusion

On 23 December 2025, Tenaga Nasional Bhd demonstrated resilience and strategic foresight. Its share price mirrored the market’s positive momentum, and the firm’s new 21‑year solar PPA underscores a commitment to renewable energy integration. Together with its infrastructure contracts, these moves are likely to reinforce investor confidence and position Tenaga Nasional Bhd as a central figure in Malaysia’s evolving energy landscape.