British utilities sector rises day after Burnham speech, JPM says investment thesis still intact

By Reuters News

** British utilities sector .FTUB6510 rises 2.8% in its biggest daily jump since May, a day after UK PM Andy Burnham makes various policy announcements for sector

** "We remain positive on the outlook for UK Utilities," JPM says after Burnham's announcements

** Electricity companies SSE SSE.L and National Grid NG.L up 2.8% and 2.9%, respectively

** "We do not see the announcement of GB Grid, a new, publicly owned networks company, as a significant threat to the growth and value creation targets of the electricity network companies," JPM says

** Water companies Pennon PNN.L, Severn Trent SVT.L and United Utilities UU.L up between 2.1% and 5.1%

** "We remain Neutral on the water names while we await visibility on sector reforms in the coming quarters, although on a relative basis we see a more attractive risk/reward in Pennon," JPM adds

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