The FTSE 100 slipped on Thursday as it was impacted by weaker utilities and banking stocks.
London’s top utility companies took a hit after National Grid announced a rights issue to pay for infrastructure investment plans.
Shares in the power giant plunged 9%, prompting falls in United Utilities, Severn Trent and Drax as investors worried about the health of the utility sector.
Danni Hewson, head of financial analysis at AJ Bell, said: “Utility stocks were always likely to come under pressure on the news that National Grid was shaking its tin to fund network upgrades.
“But there must also be questions asked about the Labour Party’s plans for energy and where a publicly owned renewable energy company will fit into the mix.
“What kind of pressure might it heap on water companies to invest…
