LONDON, Feb 6, 2026, 08:49 GMT — Regular session
National Grid (NG.L) shares edged slightly lower in early Friday trading, slipping 0.04% to 1,281.5 pence. The stock traded within a narrow range of 1,276.0 to 1,288.5 pence, hovering close to its 52-week peak of 1,300.5 pence. (Investing)
The subdued shift follows the Bank of England’s decision to keep its benchmark rate steady at 3.75% in a narrow 5-4 vote, signaling it still plans to cut rates if inflation falls as expected. “All going well, there should be scope for some further reduction in Bank Rate this year,” Governor Andrew Bailey said. (Reuters)
This hits utilities hard since investors see them as bond stand-ins — reliable, regulated cash streams that react sharply to changes in discount rates and borrowing expenses. Even with little on the company docket, the sector can shift when rate-cut probabilities fluctuate.
National Grid closed Thursday at 1,282.0 pence, marking a 0.31% gain, LSEG data shows on Reuters. (Reuters)
London sentiment stayed cautious Thursday. The FTSE 100 dropped 0.9%, weighed down by bank shares reacting to the interest rate outlook. Sterling fell 0.76% as investors shifted their bets earlier toward the next rate cut. “It’s now merely a matter of timing,” said Matthew Ryan, head of market strategy at Ebury. (Reuters)
Company-specific headlines have been sparse. On Wednesday, a regulatory filing revealed that National Grid CEO Zoë Yujnovich received a five-year option on 3,292 ordinary shares through the group’s Sharesave employee scheme. The option is priced at £9.28 per share and becomes exercisable starting April 1, 2031. (Investegate)
Investors are taking cues from peers as UK network spending ramps up. SSE, a key UK utility, this week projected lower adjusted annual earnings compared to last year while pushing forward a five-year plan to upgrade Britain’s electricity grid. CFO Barry O’Regan emphasized the priority on “accelerating investment and delivering the plan.” (Reuters)
Utilities aren’t off the hook if the rate story shifts. Persistent inflation might push borrowing costs up and hold them there. Plus, regulatory clamps on permitted returns or unexpected expenses on major grid projects could quickly sour investor mood.
Traders will focus on UK rate-cut pricing, sterling, and gilts — UK government bonds — through the rest of Friday’s session to gauge where defensives land in portfolios following Thursday’s central bank divide.
National Grid’s next major event is the full-year results for 2025/26, set for May 14, according to its investor calendar. Final dividend dates are scheduled later that month. (National Grid)
