Key Takeaway: Moody's downgraded Southern Water to junk status , citing financial and operational underperformance, compounding the broader issues facing the UK water sector. Southern Water Ltd’s credit rating was downgraded to junk by Moody’s , with a warning of potential further cuts due to its weak performance history and financial challenges. This downgrade impacts the company’s ability to raise the £4 billion in new debt and £650 million in equity required for its capital plans. The UK water industry is facing heightened scrutiny due to concerns over chronic leaks, sewage spills, and high-interest rates. Southern Water, which supplies over two million people in England, could face severe penalties from the regulator Ofwat , which may limit funds for essential upgrades. Following the downgrade, Southern Water’s 2026 bonds dropped 2.7 pence to around 85 pence on the pound. Despite the rating cut, Southern Water assured customers that services would continue unaffected, hig
KUALA LUMPUR, Nov 14 (Bernama) -- Bursa Malaysia gave up gains in the early session to close lower today, mirroring weak regional sentiment after negative cues from global equities overnight.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) shed 10.82 points to close at 1,600.68 from yesterday’s close of 1,611.50.
The benchmark index, which opened 3.39 points higher at 1,614.89, moved between 1,598.64 and 1,615.84 during the trading session.
The market breadth was negative with decliners leading gainers 586 to 419, while 543 counters were unchanged, 906 untraded and 21 suspended.
Turnover expanded to 3.14 billion units valued at RM2.69 billion versus 2.82 billion units worth RM2.22 billion yesterday.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the FBM KLCI staged a pullback today as the persistent strength of the US dollar and ongoing concerns over China’s economic outlook have dampened risk appetite across the region.
“As investors remain cautious, capital flows continue to favour the US market, which is seen as a safe haven amid prevailing uncertainties in both domestic and regional markets,” he told Bernama.
He opined that yesterday’s higher-than-expected US Consumer Price Index (CPI) data has raised expectations for a potential rate cut by the Federal Reserve in December, which could stimulate economic growth.
“However, despite this prospect, the US dollar remains strong, supported by rising inflation and attractive yields, continuing to weigh on regional markets,” he added.
Besides, he said later this evening, investors will be closely monitoring upcoming US economic data, with the Producer Price Index (PPI) and initial jobless claims offering valuable insights into inflationary pressures and the labour market.
“Tomorrow, Malaysia will announce its third-quarter gross domestic product data and the US will release its retail sales report, both of which are expected to draw significant attention.
“The focus on these indicators underscores the heightened uncertainty in the global market,” he added.
Among the heavyweights, Press Metal Aluminium fell 19 sen to RM4.40, SD Guthrie fell 16 sen to RM4.85, Maxis lost 11 sen to RM3.52, Maybank shed 12 sen to RM10.30, while Public Bank remained unchanged at RM4.47.
Among the active stocks, Life Water declined six sen to 88 sen, Mpire Global slipped three sen to 18 sen, while Cape EMS gained half-a-sen to 38 sen, Classita rose two sen to 6.5 sen, and Mega Fortris added three sen to 62 sen.
Source: Bernama
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