Boost to utilities sector from corporate activity

Utility companies are still relatively cheap even though share prices have been boosted by the market switch from technology, media and telecom stocks. The average P/E ratio on a FTSE All Share company is 25 times, while gas and water companies have average P/Es of 20.95 and 7.28 respectively. Between the end of March and the beginning of June the total return on the FTSE Gas Distributors index was 9.83%, in contrast the FTSE All Share fell by 4.6%. While the share prices of utilities may have risen they have maintained their above market average yields. The All Share currently yields 2.85...