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Gabor Kovacs of 'smoke no smoke' smokes an e-cigarette that his shop sells at Camden in London June 9, 2013.
Gabor Kovacs of 'smoke no smoke' smokes an e-cigarette that his shop sells at Camden in London June 9, 2013.
(Toby Melville/Reuters)

FINANCIAL TIMES

Tobacco companies burn brightly, still

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Like smoke from Frank Sinatra’s cigarette the global tobacco sector has climbed 40 per cent over the past two years. That is half as much again as the MSCI world index – hardly what investors might have expected given ever tighter regulation. Yet tobacco companies, especially those geared towards emerging markets, continue to perform well and regulation does not yet spell the end for the industry.