Ruling fails to dampen sector

By Peter McCready Water stocks still have many attractive defensive characteristics, but th...

By Peter McCready Water stocks still have many attractive defensive characteristics, but the recent Welsh Water ruling by the regulator has disappointed the industry and weakened share prices. At the end of January, Ofwat finally gave the go-ahead to Glas Cymru to buy Hyder's Welsh Water unit by assuming £1.8bn of the unit's debt. However, the regulator, Philip Fletcher has emphasised that this would not signal a relaxation of policies that have restricted companies from splitting up regulated water businesses. The market believes that this splitting of assets and increased o...