FTSE Stabilising After Fall

The FTSE 100 is stabilizing at new, lower levels, while the FTSE 250 is continuing to fall thanks to a poor performance at Card Factory. After the first 90 minutes of trading, the FTSE 100 was down by 18 points, and appears to be following its recent trend of opening lower then trading sideways for the rest of the day.

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shareprices.com - Tuesday, September 26, 2017

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There is little corporate news for investors to go on right now, with the only major fundamentals coming from United Utilities - who are in the middle of one of the biggest capital investment programmes in that industry right now. In the short term, t his means that debts are increasing, but their regulated returns should allow them to service those debts easily. To date, investors and analysts feel that their execution has been sound, and have noted that customer satisfaction is increasing and operational performance has improved.

After years of low rates, and ongoing economic uncertainty, investors are flocking to the utilities sector as a defensive investment. This means that companies such as United Utilities are trending above their usual average valuation.

In other news, the Bank of England has hinted at the possibility of a rate rise, and this could be bad news for investors in United Utilities. However, since there is still much uncertainty surrounding the Brexit negotiations, policymakers are likely to remain cautions for a while longer, and any rate increases will likely be small, steady and spread out over a long period.

 

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