The prospect that the government could force UK shops to take cigarettes off display has knocked some traditionally defensive stocks on the FTSE 100 today. Elsewhere, banks, retailers and construction sector stocks are all on the way up.
Typically more adept at weathering market downturns, Imperial Tobacco and British American Tobacco are both down more than 1% in a wider market that is powering ahead.
The FTSE 100 is up 188 points, or 3.4%, 5682 with banks, construction companies and even retailers making a return to the top risers' board as investors tentatively move back towards the less defensive stocks.
Reports over the weekend that the government's ongoing crack-down on smoking could extend to taking cigarettes off display has also unsettled investors in tobacco stocks. Imperial Tobacco is the hardest hit and one of the only fallers on the FTSE 100, currently down 36p, or 1.5%, at £23.19. British American Tobacco is close behind, down 30p, or 1.6%, at £18.50.
Some of the biggest losers of recent weeks seem to be attracting bargain hunters today, with directories business Yell Group up 22.3p, or 16.2%, to 160.3p, making it the FTSE 100's biggest riser. They are still down 60% since the start of this year, however, rocked by worries about its trading both in the UK and US.
HBOS is also back in demand today, with sentiment boosted by news that directors have been buying up stock in the bank, which last week was hammered by "malicious rumours" over its ability to keep functioning amid the credit crunch. The shares are currently up 62.75p, or 13.3%, at 563.5p.
Fellow banks Barclays and Royal Bank of Scotland are both up around 8%.
Finally, some degree of confidence has returned to property-sector related stocks today with Taylor Wimpey up more than 12% at 184.3p and building materials supplier Wolseley up 11% at 554p. The latter's shares sold off last week on news the weakening US market was hitting business.
