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Johannesburg - British American Tobacco, the JSE new largest counter, made a positive debut on Tuesday.
The group's shares opened at R270, reaching R290 before they settled at a closing level of R274.25.
Investors traditionally turn to the tobacco sector in times of economic slowdown. Sales of cigarettes - along with food and pharmaceuticals - tend to stay fairly resilient.
BAT has proven no exception, outperforming the UK market significantly over the past couple of months, says Neville Chester of Coronation Fund Managers.
It is a good defensive investment, he reckons.
But selling by financial institutions may be something to watch out for.
The listing of BAT on the JSE is considered an inward listing by a foreign entity for exchange control purposes. South African institutional investors may invest in inward-listed shares using their permissible foreign portfolio investment allowances.
Institutional investors in Remgro who have exceeded their foreign exposure limits as a result of the distribution will be granted two years to "realign their portfolios". Some might choose to keep BAT as part of their holdings, but others could look to offload.
BAT's main listing is in London.
Chester hopes that the authorities will consider reclassifying BAT, thereby lifting the restrictions.
BAT sought a secondary listing in Johannesburg as part of a restructuring under which Richemont and Remgro spun off their combined 30.1% stake.
BAT said on Tuesday that after its shares are next week distributed to shareholders in Remgro and Reinet, a new investment company created as part of the restructuring, Reinet would hold a residual stake of about 3%.
Remgro shares plunged 67% to R61 and Reinet Investments also fell as they traded ex-rights to BAT shares.
According to Reuters, BAT's market capitalisation - of around R530bn - makes it the largest company on the JSE. BHP Billiton has a market value of R342bn and Anglo American's value is more than R287bn.
Traders said the listing helped to boost the JSE, which had its first positive day in almost a week.
- Fin24.com and Reuters