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))