Sector movers: Better than expected BT results lift telecom sector

30th Jul 2009 10:52

The telecommunications sector jumps ahead after BT's results, while still fairly grim, were ahead of expectations.The firm saw profits slump in the first quarter, held back by BT Global Services, while its pension deficit surged.The group said net pension position at 30 June 2009 was a deficit of £5.8bn, compared with a deficit of £2.9bn at 31 March 2009 "The deterioration in the position since 31 March 2009 is due to the reducing discount rate and increasing inflation rate, more than offsetting the asset value increase of £1.1bn," said the group.Lower finance income and higher finance expenses pushed first quarter profits, on a reported basis, down 45% to £272m. But it saw adjusted EBITDA come in at £1.3bn against £1.4bn in the same period last year, which was better than expected.The utilities sector is lower despite two in line updates from water companies.Northumbrian Water will raise its full-year dividend by 6% after increased water and sewerage charges helped the group maintain revenues at previous levels.Water firm Pennon Group said it has been performing in line with management expectations and intends to offer £120m of senior unsecured convertible bonds.Both stocks are lower, in line with the sector. Top performing sectors so far todayFixed Line Telecommunications 1,848.81 +8.56%Mining 15,791.90 +4.45%Automobiles & Parts 2,250.39 +2.39%Real Estate 1,692.71 +2.20%Banks 4,344.17 +2.12%Bottom performing sectors so far todayGas, Water & Multiutilities 3,480.25 -2.27%Media 2,735.99 -1.78%Electricity 6,160.80 -1.20%Oil Equipment Services & Distribution 12,789.01 -1.03%Travel & Leisure 3,277.93 -0.40%