Sector movers: Utilities SSE and Centrica trading lower
UK electricity stocks were trading lower again on Friday while the utility sector was subdued as energy provider Centrica extended losses after some gloomy annual results the previous session.
Centrica
131.40p
16:35 25/04/24
Electricity
9,976.62
17:09 25/04/24
FTSE 100
8,078.86
17:14 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Gas, Water & Multiutilities
5,959.19
17:09 25/04/24
SSE
1,650.50p
16:44 25/04/24
Electricity stocks such as SSE have fallen over recent days after a Competition and Markets Authority (CMA) report accused the Big Six energy providers of over-charging customers.
The CMA said that over 95% of customers from the six-biggest energy groups in the UK - British Gas, EDF, E.on, Npower, ScottishPower and SSE - paid between £158 to £234 a year more than they needed to by not switching providers.
Energy secretary Caroline Flint said the CMA report "confirms that Britain’s energy market is broken and that radical action is needed to protect consumers".
SSE shares were down 0.7% at 1,524.7p on Friday afternoon.
Meanwhile, British Gas owner Centrica said on Thursday that revenues increased 11% to £29.4bn in 2014 but adjusted earnings per share slumped 28% to 19.2p as a result of "challenging trading conditions, including extreme weather patterns and falling oil and gas prices".
The company, which unveiled plans to cut spending and operating costs, also slashed its full-year dividend payment by 21% to 13.5p per share and said it had taken the "difficult decision" to rebase its dividend policy by 30%.
Charles Stanley lowered its recommendation on Centrica from 'hold' to 'reduce' on Friday, saying that the dividend cut, which had been speculated about prior to results day, came "earlier than many anticipated".
Analyst Tina Cook said even though the shares have slumped over the last year, dropping by 8% on results day alone, she still sees downside "given the myriad of uncertainties" and "limited visibility".
The stock was down a further 1.8% at 252.6p on Friday afternoon.
Top performing sectors so far today
Industrial Metals & Mining 1,910.65 +1.78%
Mobile Telecommunications 5,237.28 +1.17%
Mining 15,112.54 +1.05%
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Technology Hardware & Equipment 1,301.78 +0.64%
Bottom performing sectors so far today
Real Estate Investment Trusts 3,250.48 -1.04%
Personal Goods 26,543.63 -0.62%
Electricity 9,147.38 -0.58%
Health Care Equipment & Services 6,732.06 -0.58%
Food Producers & Processors 7,952.84 -0.55%