High yields on utilities but little share growth

After a dismal 1999 utilities are benefiting from more interest so far this year as expectations grow of rate rises in the first half of 2000. For the 12 months to 10 January the FTSE 350 Electricity index fell by 24% and the FTSE Water index fell by 30%, whereas the main index rose by 10.9%. In the first week of 2000 the electricity index went up by 5% and the water index increased by 3.7% compared with a 3.7% fall in the FTSE 350. Last year Edinburgh Fund Managers was underweight the sector. Tony Mather, investment manager at Edinburgh, says: "Utilities were shocking performers as the f...