British utilities stocks fall sharply as election looms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 23 2024
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Source: reuters
- UK Utilities Sector Decline: UK utilities stocks experienced a significant drop in early London trading following Prime Minister Rishi Sunak's surprise election announcement, raising concerns about political risk.
- National Grid's Fundraising Plan: National Grid announced plans to raise around £7 billion through a rights issue, leading to a nearly 9% decline in its shares.
- Index of UK Utilities Shares: An index tracking UK utilities shares plummeted by almost 6%, the largest one-day drop since March 2020, with companies like Drax, Pennon Group, and United Utilities all down over 5%.
- Water Companies at Risk: Analysts from Citi highlighted water companies as facing the most risk due to expected political battles and rhetoric ahead of the next election.
- Broader Market Impact: The FTSE All share index was down by 0.1% amidst the turmoil in the UK utilities sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
