British American BTI Share Price JSE Resumes Steep Uptrend, as Buyers Return After June Slide
British American Tobacco’s stock has rebounded after a sharp June dip, with investors eyeing key support levels and a continued long-term up
Quick overview
- British American Tobacco's stock has rebounded by 1.5% after a decline in late June, indicating renewed investor interest at key support levels.
- The company faces challenges from regulatory scrutiny and slowing sales of its vaping brand, Vuse, which may impact future growth.
- Despite these headwinds, BTI has maintained a long-term upward trend, with analysts optimistic about its potential to challenge previous all-time highs.
- BAT's upcoming dividend payment plans continue to attract income-focused investors, reinforcing its reputation as a reliable source of shareholder returns.
British American Tobacco’s stock has rebounded after a sharp June dip, with investors eyeing key support levels and a continued long-term uptrend.
Buyers Return After June Pullback
Following a sharp decline in the final week of June, buyers returned to British American Tobacco’s (JSE: BTI) stock yesterday, pushing it up by 1.5% and signaling renewed interest at key technical levels. The stock has been on a broader upward trend since early 2024, shrugging off periods of volatility even as it navigates shifting industry dynamics.
Just over a year ago, BTI was trading around R53. From there, it embarked on a steep bullish run, climbing 43% to reach as high as 8,940 ZAC in mid-June. However, that strength faltered in the final days of June when the stock failed to hold above the critical R89 level, triggering technical weakness that pulled it back toward the bottom of its ascending channel.
BTIJ Share Price Chart – The Uptrend Is Getting Steeper in 2025
By the end of June, BTI was testing its 20-week simple moving average (SMA) near R80, a level that has served as important support throughout its rally. The decline slowed above this point, and the start of July has brought renewed buying interest, suggesting traders see value at these levels and remain confident in the longer-term bullish channel.
Vaping Regulatory Scrutiny Adds Pressure
The June retreat was partly driven by concerns over slowing sales of Vuse, BAT’s flagship vaping brand, as regulatory pressures increased globally. Governments and regulators are tightening environmental standards and approval processes for e-cigarette products, squeezing margins and making it harder for BAT to shift away from traditional combustible tobacco.
E-cigarette sales growth has begun to stall on both sides of the Atlantic, casting fresh doubts on projections that vaping would overtake traditional tobacco as the leading nicotine alternative. At the same time, BAT faces intensifying demand for even newer forms of nicotine delivery, like modern oral products including pouches and strips, where competition is heating up.
These challenges underscore BAT’s position at a strategic crossroads. Once a dominant force in heated tobacco products, the company now faces declining revenues in those segments, the threat of further regulation, and consumer preferences shifting toward alternatives perceived as safer.
Charting the Path Ahead: Can the Uptrend Hold?
Despite these headwinds, British American Tobacco’s share price has posted consistent gains for more than a year. Technical analysts note that if the broader trend continues to hold above key support levels, BTI could eventually challenge its all-time high of R98.40 set in 2016.
The stock’s ability to stabilize above the 20-week SMA will be critical. A decisive recovery from this level would reinforce the long-term bullish channel, while a sustained break below it could prompt a deeper correction. Investors are closely watching these levels to gauge whether the current buying interest will be enough to resume the march higher.
Dividend Plans Support Investor Confidence
Beyond the share price action, British American Tobacco also announced the final details for its upcoming dividend payment as part of a series of quarterly payouts for its financial year ending December 2024. The next distribution is scheduled for May 2025, with shareholders on the UK and South African registries set to receive 60.06p per ordinary share.
For South African shareholders, the dividend will be converted to rand, with the applicable exchange rate and South Africa Dividends Tax determined in line with local regulations. This predictable dividend policy continues to be a major draw for income-focused investors, reinforcing BAT’s reputation as a reliable source of shareholder returns even as the company grapples with the shifting landscape of the global nicotine market.
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