Market is cautious over cross selling in utilities

The water sector has rebounded over recent months but sentiment for the utilities sector remains negative due to the impact of regulations. The rise in water stocks is due to several factors, says David Bertocchi of Baring Asset Management's UK specialist team. He says: "There is a general uncertainty in technology and growth which has led investors towards defensive stocks." He adds the competition commission review on Mid Kent and East Surrey Holdings has had an effect: "These small companies challenged regulations. They were the only two that did and were largely successful, which i...