Steady eddie water stocks power ahead of the FTSE

The steady eddie water utility stocks should have been casualties of the improving economy. But this sector has outperformed the All-Share so far this year. Rathbones' Alan Dobbie explores this 'intriguing' performance.

This year began with many market commentators warning investors to prepare for a continued economic recovery, rising bond yields, and further outperformance from small caps, mid-cap stocks and more economically-sensitive sectors. Alas, markets are rarely so obliging. Economic recovery has continued but bond yields have fallen and investors have favoured large-cap stocks and more defensive sectors. For the first half of the year, the FTSE All-Share index only managed to eke out a 1.6% gain, far less than many of the bulls had been hoping for. One casualty of the continued economic reco...