London, Feb 20, 2026, 09:20 GMT — Markets running in the usual session window.
- SSE shares grabbed attention again, with traders pivoting to rate-sensitive defensives.
- Fresh figures on UK spending and public finances are shifting the conversation around short-term rates.
- Utilities still divide investors—some sticking with reliable cash generation, others wary of the hefty capital spending needed.
SSE (SSE.L) shares nudged up on Friday, with the price gaining roughly 0.7% and hitting 2,567 pence as of 0920 GMT. The day’s range so far: 2,517 to 2,568 pence. The stock remains not far from its 52-week peak at 2,667.
This matters: utilities typically behave like bond proxies, tracking bond yields—the returns tied to government debt. Rate-cut bets ramp up, and suddenly the sector finds buyers, news or no news from the companies themselves.
No shortage of nerves in the background. The FTSE 100 pulled back Thursday, snapping a two-day record streak as mining shares lost ground. Oil prices surged on fresh U.S.-Iran friction. Centrica tumbled on a profit warning from its energy trading arm and put its buyback plans on hold.
SSE shares finished Thursday at 2,550 pence, down 2.1%, trailing the wider market. Just a day before, the stock had touched a new 52-week high, and volume topped its recent average.
UK public finances delivered a record budget surplus for January, data out Friday showed, just a couple weeks before the Office for Budget Responsibility updates its projections on March 3. “The chancellor’s headroom has already likely diminished,” said Dennis Tatarkov, senior economist at KPMG UK. Reuters
Retail sales surprised to the upside, climbing 1.8% in January from the month prior—outpacing expectations. “Consumers are opening their wallets again,” said Thomas Pugh, chief economist at RSM UK. Most in the market are still pricing in a Bank of England rate cut for March. Reuters
SSE’s plans have investors crunching the numbers around the project’s size. This week, the company announced up to £950 million earmarked for upgrading subsea power connections to Scotland’s island communities. Its distribution arm tapped five partners to handle the contracts.
This month, SSE put out an adjusted EPS forecast between 144 and 152 pence for the year to March 2026—coming in under last year’s level—as the company continues network upgrades and grapples with variable weather. “Our focus has been on accelerating investment,” CFO Barry O’Regan said. Reuters
Still, the picture can flip fast. A jump in UK bond yields, or tighter regulatory limits on returns as costs climb, and suddenly these stocks don’t look so “defensive” after all. Weather’s in the mix, too—fluctuations in wind or hydro output hit renewables right away.
Investors get their next read on SSE on May 28, when the company posts preliminary results for the year to March 31. Spending, financing details, and dividend plans will be in focus.
