BUZZ-Edison International extends slide as wildfires menace Los Angeles

Jan 10 - Shares of utility co Edison International EIX.N down 2.4% at $67.80 before the bell, threatening to fall for fifth straight session, as catastrophic wildfires in Los Angeles have killed at least 10 people and razed thousands of homes

EIX shares on Weds closed down ~10%, registering their biggest one-day pct drop since COVID pandemic onset in Mar 2020, as its subsidiary, Southern California Edison (SCE) shut power to its customers

SCE said late Thurs it received notices from insurers to preserve evidence related to the Eaton Fire, but denied its equipment was involved

In research note on Thurs, Jefferies said EIX and other wildfire-exposed utilities are expected to trade at a wider discount to the benchmark S&P 500 Utilities sector .SPLRCU, underscoring the risks of natural disasters on their businesses

Jefferies also warned EIX shares could be at risk if co's liabilities breach the size of the California Wildfire Fund, which provides financing to reimburse eligible claims arising from a wildfire caused by a utility

Shares of northern California utility firm PG&E Corp PCG.N down ~2% premarket after losing 3.7% on Weds

Sempra SRE.N, whose footprint includes providing power and gas in the San Diego area, down ~1% on very thin volume before the bell. Its stock fell for third straight session on Weds, finishing down 1.7%

Through Weds, SPLRCU up 0.4% to start 2025. Its three biggest losers YTD are EIX (13%), SRE (5.6%) and PCG (4.6%)

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))