London, June 22, 2026, 12:14 BST
- National Grid was last at 1,203.5 pence, off 0.7%. Shares changed hands in a range between 1,193.5p and 1,215.5p, according to delayed midday numbers.
- Britain’s 10-year gilt yield stuck close to 4.85% after Prime Minister Keir Starmer said he was stepping down.
- The drop on Monday wiped out close to 39.5% of Friday’s bounce. Support is now seen around 1,190p-1,194p, with resistance set at 1,212p-1,216p.
National Grid plc (LSE:NG.) was down 0.7% at 1,203.5p in late Monday trade, trailing the FTSE 100, which added around 0.2%. The stock moved between 1,193.5p and 1,215.5p by just after midday.
LSE:NG. moved with the rest of the market, with no fresh company news out. Starmer’s resignation brought fiscal policy back on the radar as the 10-year gilt yield hovered near 4.85%, still close to highs not seen since 2008. “Markets have mostly shrugged off the news,” said Ruth Gregory, deputy chief UK economist at Capital Economics, but warned that could change “if there is a tack towards a more expansive fiscal policy.” Reuters
Higher government yields are an issue for National Grid. Utilities are looked at as bond alternatives by some investors. The idea is to get steady dividends, but bigger yields elsewhere mean less reason to own the stock for income. At March 31, National Grid had £44.2 billion in net debt. Net debt-related financing costs went up by £89 million in its most recent financial year.
Monday gave back 8.5p of Friday’s 21.5p move, so the stock held on to just over 60% of the earlier gain. That’s a 39.5% retracement. The stock closed Friday up 1.81% at 1,212p.
Short-term levels are clearer now. Support sits around Thursday’s 1,190.5p close and Monday’s 1,193.5p low, which is where buyers stepped in before. Resistance is seen at Friday’s 1,212p close and Monday’s 1,215.5p high, keeping gains in check until now. A move under support brings Friday’s 1,174.5p low back into focus, while a break over 1,215.5p would clear the near-term lid.
National Grid shares trade at 1,203.5p, putting the stock at about 15.4 times latest underlying EPS of 78p. This “underlying” number strips out one-offs and accounting items, according to the company. National Grid last paid a full-year dividend of 48.49p, representing a trailing yield close to 4.0%. Shares are still 15.8% under the 52-week high from March at 1,428.5p.
Execution is still the key issue for National Grid. The company posted a record investment of £11.6 billion for the year and predicts its underlying EPS will grow 13%-15% in 2026/27 as spending ramps up in the UK’s new transmission price-control period. CEO Zoë Yujnovich said this is the “largest investment programme in our history,” committing at least £70 billion over five years. National Grid
Analyst targets on National Grid show the gap in views tied to its delivery. Bank of America set a 1,450p price target, seeing around 20.5% upside from Monday, while Deutsche Bank’s 1,250p stands for less than 4% and comes with a Hold. Deutsche has favored sector names SSE and United Utilities instead. UBS said National Grid was “priced for perfection.” Ii
Risks are two-sided here. If gilt yields stay high, National Grid could face higher refinancing costs and a squeeze on its valuation as old debt rolls off. Delays on projects, supply snags or moves from politicians could all slow the £70 billion plan. But if yields drop, returns set by regulators hold up, and projects move quickly, that would help support both earnings and dividends. National Grid’s revenue depends mostly on regulatory formulas, not wholesale power, according to .
No scheduled results this week, so shares are expected to move with gilt yields, a management handover, and whatever signals come from the Bank of England. The next big dates for investors are July 14, when the company holds its annual meeting, and July 23, when the 32.14p final dividend gets paid.
