British utilities stocks decline sharply ahead of looming election

 

UK utilities stocks led declines in early London trading on Thursday following Prime Minister Rishi Sunak's surprise announcement of an upcoming July election, stirring concerns about political uncertainties impacting the sector.

Adding to the pressure, National Grid disclosed plans to raise approximately £7 billion ($8.9 billion) through a rights issue, triggering a nearly 9% plunge in its shares.

A gauge of UK utilities stocks plummeted nearly 6%, marking its sharpest single-day decline since March 2020. Drax, Pennon Group, and United Utilities were among the hardest hit, each falling over 5%.

Citi analysts highlighted particular vulnerability among water companies, anticipating heightened political scrutiny and electoral battlegrounds in the lead-up to the next election.

 

Meanwhile, the broader FTSE All-Share index dipped marginally by 0.1%.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.