Sector movers: Tobacco companies feel the heat

Tobacco companies were both down around 3%, extending recent falls amid concerns around emerging markets.

Imperial Brands was down 3.4% to 2,606.5p and British American Tobacco was down 2.7% to 2,608.17p, sinking to levels last seen in 2015, with the pair under pressure from a number of drivers.

The US Food & Drug Administration put out a briefing that BATS's Swedish-style snus smokeless tobacco pouches contain higher amounts of arsenic, cadmium and nicotine than cigarettes, despite having lower levels of other potentially harmful chemicals.

BATS has not produced adequate data to show its Camel Snus pouches are a less risky alternative to cigarettes, Bloomberg reported, suggesting the company may face hurdles as it attempts to develop less-harmful products.

Also on Tuesday, US rival Altria Group, owner of Marlboro maker Philip Morris International, said it was mulling market opportunities in the cannabis industry, coming on the heels of Corono beer maker Constellation Brands’ investment in Canopy Growth last month.

Robert Fagan, an analyst with GMP Securities in Montreal, told Baijuana Business Daily that big tobacco companies were taking their time with regards to cannabis industry opportunities.

What's more, there were reports that Philip Morris is also aiming to stamp out smoking for good in the UK by stopping the sale of cigarettes by the end of the next decade. As vaping becomes more widely accepted, the company said it would not sell cigarette brands in Britain by the 2030s, with many cities expecting to go smoke-free by within the next decade.

Support services, one of the most populous sectors on the London market, was boosted by a healthy rise for FTSE 100 equipment rental group Ashtead Group.

The US and UK-focused company was the standout gainer after the equipment rental firm said it will increase and extend its share buyback plans as it expects full-year results to beat current expectations following a strong first quarter.

Hargreaves Lansdown analyst Nicholas Hyett said: "Donald Trump’s economic policies are playing out quite nicely for Ashtead. A massive cut to corporation tax has done wonders for profits this year, and it’s also sparked a round of investment in the domestic US economy which is seeing demand for Ashtead’s construction equipment soar."

Top performing sectors so far today

Support Services 8,365.07 +0.50%
General Industrials 6,818.41 +0.31%
Personal Goods 37,744.17 +0.28%
Pharmaceuticals & Biotechnology 14,267.88 +0.21%
Chemicals 15,841.25 +0.14%

Bottom performing sectors so far today

Tobacco 40,197.89 -2.16%
Industrial Metals & Mining 4,150.89 -1.84%
Mining 15,523.90 -1.51%
Technology Hardware & Equipment 954.35 -1.47%
Automobiles & Parts 11,112.92 -1.15%