Utilities companies were the biggest fallers on the London market on Thursday, following the election announcement last night and after a heavily discounted fundraising announced by National Grid PLC (LSE:NG.).
After announcing a rights issue at a near-40% discount alongside its results, National Grid shares were the biggest faller, down almost 10%, wiping out all its gains in the year to date.
The cash is going towards debt restructuring but mostly its five-year £60 billion infrastructure investment programme to upgrade electricity infrastructure.
Other utilities wre also under pressure in morning trading, with blue-chip water companies United Utilities Group PLC (LSE:UU.) and Severn Trent PLC (LSE:SVT) both down 4.5% and mid-cap rival Pennon Group PLC (LSE:PNN, OTC:PEGRY) down 5.3%.
Other former state-owned companies are down too, potentially connected to the election announcement, with British Gas owner Centrica PLC (LSE:CNA) down 1.8%, BT Group PLC (LSE:BT.A) down 2.8% and Yorkshire power company Drax Group (LSE:DRX) PLC down 8.6%.