MARKET REPORT: British American Tobacco on vapers trail with TV ad campaign
The number of vapers, or e-cigarettes, are on the increase and tobacco giant British American Tobacco (Bats) is banking on them growing even further after Monday’s launch of its first UK television advertising campaign for more than 20 years.
News of the ‘responsible’ campaign for its e-cigarette brand Vype lit up shares of the tobacco giant which closed 61.5p higher at 3108.5p.
The TV ad promises ‘satisfaction for vapers’, the name given to people who smoke e-cigarettes. Shown after the 9pm watershed, it features a man and woman running through a city before passing through a cloud of vapour and being propelled into the air.
Vype was launched by Bats in July 2013. Cigarettes sales are on the decline and down an average of 3 per cent on the year in the US, while sales of e-cigarettes rose from £358m in 2012 to £599m last year.
E-cigarettes are far safer than smoking. No tobacco leaves are combusted, so they don’t release the tars and gases that lead to cancer and other smoking-related diseases. Instead, a heating element converts a liquid solution into an aerosol that users exhale as a white plume.
At the time of Vype’s launch, analysts at Canaccord Genuity forecast that the days of traditional cigarettes were numbered and that e-cigarettes would prove to be the most significant development in the tobacco industry stretching back some 200 years.
Rival Imps, which is launching its own e-cigarette later this year, puffed up 57p to 2357p in sympathy.
With Wall Street closed for President’s Day, dealers in London were left to their own devices. So with confidence in the UK economy showing no signs of abating and new Fed boss Janet Yellen toeing the line on tapering, fund managers decided to take the bull by the horns and chase blue chips higher. The Footsie closed 72.38 points up at 6,736 and the FTSE 250 advanced 134.09 points to 16,244.71.
Insurer RSA rose 2.35p to 98.2p amid reports that new boss Stephen Hester had sounded out institutional investors about the merits of a share placing to raise £350m.
Meanwhile, another jackanory suggested that an early sale of its Canadian broking business Noraxis would give Hester more time and a share placing would not be required. At least not until the share price is a lot higher. RSA reports full-year results on February 28.
Reflecting the booming UK housing market with prices at six-year highs, Persimmon erected a gain of 30p at 1415p ahead of annual results on February 25. Bookmaker William Hill eased 0.2p to 346.9p after stating that it is sticking with its planned timetable to replace veteran chief executive Ralph Topping in 2015 despite a report that it wanted to find a replacement this year.
Miner Kazakhmys firmed 3.7p to 237.6p after revealing it will increase salaries for operational staff by 10pc from 1st April following last week’s 19 per cent devaluation of the tenge, Kazakhstan’s currency.
Analysts said the renegotiation of salaries upwards wipes out part of the benefits to the company
Dublin-based support services provider DCC jumped 133p to 2918p despite the company cutting its guidance on full-year earnings per share growth to 7 per cent-10 per cent, from 13 per cent, due to mild weather. Investec remained upbeat and advised clients that the development spend is more important than short-term weather impact.
Self storage group Lok’nStore advanced 15p to 212.5p following an upbeat pre-close trading statement. First-half revenues were up 7.8 per cent on a like-for-like basis with January delivering a 9.5 per cent increase, the largest monthly increase since June 2006. A profits warning sank Shaft Sinkers, 2.25p or 13.64 per cent down at 14.25p. The shaft sinking and contract mining company said it expects full-year pre-tax profits to be in the range of £2.5million and £3million, compared with analysts’ expectations of around £6m. The board cited several operational issues and project delays for the under-performance.
Goldplat slumped 1.12p to 5.62p after warning full-year profits are expected to be materially lower than analysts’ expectations due to the sharp fall in the gold price. Broker SP Angel forecasts a fall in profits to £500,000 from £3.8million.
A WH Ireland downgrade to market perform in the wake of acutely disappointing interim results demoralised Getech. Sellers left the close 30.5p lower at 74.5p.
The broker says that whilst consultancy work has seen strong demand, the somewhat irregular purchasing profile of customers driven by cyclical budget constraints has led to first-half results considerably lower than the same period last year.
- Red hot rumours of an imminent announcement regarding its increasing participation in North Sea exploration attracted speculative buying of Enegi Oil, 4pc higher at 9.62p. It has diversified its portfolio beyond Canada with projects in the North Sea, Ireland and Jordan. It is involved with three projects in the North Sea and its aim has been to leverage partner ABT’s technology to access reserves in marginal fields.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Blue Whale fund manager on the best of the Magnificent 7
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mercedes has finally unveiled its new electric G-Class
- Currys shares surge after profit guidance upgrade as...
- HMRC phone customers spent 798 YEARS on hold in single...
- I don't want smart meters, so Eon is charging me £316 to...
- Hundreds of jobs at risk as Anglo slashes funding for...
- Royal Mail's future hanging in the balance as bid...
- Axe stamp duty on British shares, says Flutter boss as...
- Tesco boss pockets £10m in biggest ever pay deal at a UK...
- Virgin Money UK warns of pressure on profits ahead of...
- Investors ramp up bets against BT as new boss prepares to...
- Marston's losses narrow amid hopes of summer sporting...
- How refreshing that Anglo has chosen not to grab the...
- I believe pre-nups are so vital every couple should be...
- My neighbour has started keeping bees - can I stop him?...
- Why 16 to 24-year-olds are putting their parents to shame...
- MARKET REPORT: Vodafone shares rally as investors cheer...
- De Beers eyes £4bn London float as Anglo bids to fend off...
- The new 5.05% limited access account that savers are...
- Santander offers £175 to switch your current account -...