LONDON (ShareCast) - Utilities stocks were among the worst performers of the day on Friday as companies reacted to Tuesday’s Ofwat statement in which it clarified some licence modification proposals following requests for more information from shareholders.

The general consensus is that water suppliers do not agree with the proposals from the regulator, which said that it wanted to set segmental price controls.

United Utilities and Severn Trent both released statements today, calling for “modifications” to the current proposals. However, Pennon, which is trading near its worst levels since the start of 2011, was the worst performer. Exane BNP Paribas upgraded its rating for Pennon today to ‘neutral’ but cut the target price from 700p to 660p.

Investors were also deciding to take caution ahead of next week when interim results from all three companies are due.

Xstrata was higher after saying that its nickel division has completed the construction of the first production line at the Koniambo project has been completed, with first metal anticipated in January. It was announced yesterday afternoon that Xstrata's merger with commodities giant Glencore has won the blessing of the European Commission. Both stocks were making gains this morning.

Sector peer ENRC rose after announcing that it is putting more on its Chairman's plate in order to let its Chief Executive Officer focus more on operations, "notably cost and operational efficiencies across the group's assets." Anglo American was also wanted after naming the leadership team for its UK construction joint venture with French cement group Lafarge.

Drinks giant SABMiller was on the up after releasing its first-half results yesterday. The stock was raised from 'reduce' to 'neutral' by Nomura this morning, which cited alleviated concerns about the company's margins. Meanwhile, Credit Suisse reiterated its 'outperform' rating on the shares today, saying that while the stock is trading at a 6% premium to the wider consumer staples sector, it believes it can "re-establish a c10% premium rating".

Oil titan BP was higher after appointing long-running company employee Lamar McKay as the new head of its Upstream division, which is thought to ease the pressure on current frontman Bob Dudley.


FTSE 100 - Risers
IMI (IMI) 1,022.00p +2.20%
Aggreko (AGK) 2,204.00p +1.75%
GKN (GKN) 218.00p +1.68%
Kingfisher (KGF) 281.20p +1.52%
SABMiller (SAB) 2,841.50p +1.45%
Xstrata (XTA) 1,028.00p +1.38%
InterContinental Hotels Group (IHG) 1,695.00p +1.38%
Croda International (CRDA) 2,333.00p +1.30%
Schroders (SDR) 1,588.00p +1.21%
Petrofac Ltd. (PFC) 1,625.00p +1.18%

FTSE 100 - Fallers
Pennon Group (PNN) 597.00p -1.65%
Morrison (Wm) Supermarkets (MRW) 261.00p -0.91%
Polymetal International (POLY) 1,101.00p -0.63%
Severn Trent (SVT) 1,561.00p -0.57%
Standard Chartered (STAN) 1,437.00p -0.52%
Hammerson (HMSO) 462.20p -0.32%
Serco Group (SRP) 555.00p -0.18%
Whitbread (WTB) 2,356.00p -0.17%
Rio Tinto (RIO) 3,006.00p -0.13%
Standard Life (SL.) 306.40p -0.13%

BC

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE