Sector movers: Tobacco lights up

24th May 2010 13:28

Tobacco stocks are in good health Monday thanks to upbeat broker comment.Japanese firm Nomura has lifted Imperial Tobacco from 'neutral' to 'buy' in the belief that now the stock has dipped below 1,800p there is little downside risk left.Analyst David Hayes thinks the market will "now start to reassess upside potential for fundamental equity valuation (high cash generation/returns), even based on very cautious assumptions" while there is always the possibility of "a medium-term M&A [mergers & acquisitions] exit."There's a 'conservatively realistic' new price target of £20.Industrial Metals & Mining finds itself in a hole though as First Quantum Minerals (FQM), Ferrexpo and Talvivaara slide. The Congolese Supreme court has reinstated the rights of state-owned miner SODIMICO over a number of exploration and exploitation licences now held by FQM units, Frontier and Comisa.FQM, which operates the Lonshi and Frontier copper mines in the Democratic Republic of Congo, is fuming that it was not told of the hearing.Chairman and CEO Philip Pascall alleges that the action is "obvious retaliation for our commencement of international arbitration with respect to the illegal cancellation of our Kolwezi project and our refusal to resolve this dispute by agreeing to submit to arrangements with unspecified third parties."Top performing sectors so far todayHousehold Goods & Home Construction 6,186.12 +1.78%Tobacco 24,037.23 +1.22%Real Estate Investment & Services 1,395.22 +1.16%Mobile Telecommunications 3,049.94 +1.03%Fixed Line Telecommunications 1,823.12 +0.94%Bottom performing sectors so far todayOil & Gas Producers 7,271.16 -2.08%Industrial Metals & Mining 4,897.12 -1.82%Industrial Transportation 2,234.32 -1.31%Automobiles & Parts 2,758.92 -1.09%Oil Equipment, Services & Distribution 16,312.45 -0.96%