LONDON (ShareCast) - One of the worst performing sectors today was Tobacco, with the declines being led by BATS and Imperial Tobacco after US peer Philip Morris International yesterday warned the industry could suffer an overall 2-3 per cent decline in 2014.

The American company lowered its own expectations for the year ahead, saying it forecast a continuation of the trend seen this year. It announced plans to spend an extra $100m on non-cigarette products.

The US giant was this morning hit by Goldman Sachs after the US bank downgraded the cigarette maker from "conviction buy" to "neutral", likely resulting in read across to its British peers.

Industrial Metals & Mining was also putting in a poor performance as investors cautiously digested the minutes from the latest Federal Reserve meeting, and moved to price in a weaker than expected Chinese manufacturings sector PMI reading overnight. Adding to woes, metal prices were broadly lower.

Specifically, Antofagasta fell after UBS downgraded the stock to 'neutral' from 'buy'.

Heading the other way was Fixed Line Telecommunications, led by Telecom Plus, following yesterday's news that it has agreed to pay £218m to buy back two gas and electricity supply businesses from Npower which it sold in 2006.

The FTSE 250 company, which operates via the Utility Warehouse brand and uses its own customers as distributors, will fund the deal via a £130m share placing and open offer at a discounted price of 1,475p, together with £100m of new debt.


Top performing sectors so far today
Fixed Line Telecommunications 4,378.59 +1.57%
Pharmaceuticals & Biotechnology 11,604.22 +1.40%
Chemicals 9,973.89 +1.21%
Mobile Telecommunications 5,326.04 +0.95%
Household Goods & Home Construction 10,990.49 +0.82%

Bottom performing sectors so far today
Industrial Metals & Mining 1,339.63 -3.80%
Tobacco 36,971.73 -2.15%
Mining 16,488.62 -1.34%
Food Producers & Processors 7,130.04 -1.02%
Electronic & Electrical Equipment 4,137.77 -0.94%

NR

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