Tobacco sector monthly seasonality analysis

The 2013 edition of the Almanac looks at the historic monthly performance of the FTSE 350 sectors. Here we look at the Tobacco sector.

The following chart plots the average out-performance of the FTSE 350 Tobacco sector over the FTSE 100 Index by month since 1999. For example, since 1999 on average the Tobacco sector has out-performed the FTSE 100 Index by 4.1 percentage points in February.

Observations:

  1. The strongest months of the year relative to the market for the sector have been February and May, the sector has only under-performed the market in two years since 1999 in February.
  2. There have been no consistently weak months for the sector; although on average the sector has under-performed the FTSE 100 Index by 1.5 percentage points in October, the sector has out-performed the market in 50% of years since 1999 in this month.

The two stocks in the FTSE 350 Tobacco sector [NMX3780] are-

British American Tobacco [BATS]
Imperial Tobacco Group [IMT]
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