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UK Index Tobacco shares are sharply lower (down 4% to 7%), weighing on the blue-chip index into the close (7.6% of index) as investors interpret any US regulatory efforts to dampen demand for cigarettes, by reducing nicotine to non-addictive levels, as a negative for the industry.
This may be an overreaction, however.
It might not sound great, but it doesn’t read like the industry is destined to go up in smoke.
Shares are already well off their worst levels.
Mike van Dulken, Head of Research, 28 July 2017
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
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