Oct. 21 (Bloomberg) -- Cie. Financiere Richemont SA, the world's largest jewelry maker, traded for the first day as a standalone luxury company after spinning off tobacco and technology investments.

Richemont, the maker of Cartier necklaces and Vacheron Constantin watches closed at 25.90 Swiss francs today in Zurich trading. Shareholders this morning received one share in Reinet Investments SCA for each of their Richemont shares. Reinet began trading at 13.25 euros in Luxembourg.

Richemont traded above the median estimate of eight analysts for the shares to be valued at 20 francs, excluding Reinet. The spinoff makes Richemont more attractive to investors who want a ``pure'' luxury company without a stake in British American Tobacco Plc, the maker of Lucky Strike cigarettes, Rogerio Fujimori, an analyst at Credit Suisse, wrote yesterday.

``This is a clear thumbs-up to the transaction,'' Jon Cox, an analyst at Landsbanki Kepler in Zurich, said of today's share price. He has a ``buy'' recommendation on Richemont.

Reinet's assets include a 19.5 percent stake in British American Tobacco, 351 million euros ($465 million) in cash and investments that were valued at 55 million euros on May 31. BAT shares fell 146 pence, or 8.5 percent, to 1,568 pence in London. Reinet will distribute 17.6 percent of BAT's stock to its shareholders Nov. 3, allowing them to sell the shares.

Chairman Johann Rupert created the investment company, having said he expects ``once-in-a-lifetime'' opportunities to arise in coming years. Rupert-family investment companies have delivered positive returns over the past two decades. Richemont shares worth $1 million when the company was formed in 1988 would have fetched $20.9 million as of Aug. 6, the jewelry maker said two months ago when it announced the spinoff.

Increased Exports

Swiss watch exports increased 15 percent in September, the fastest pace in five months, the Federation of the Swiss Watch Industry said today. That's boosting demand for Richemont shares, said John Guy, an analyst at MF Global Securities in London.

Reinet closed at 11.60 euros in Luxembourg.

``Reinet's shares should really reflect whatever is happening in British American Tobacco in London today,'' said David Shapiro, who helps manage $3.7 billion at Johannesburg- based Sasfin Holdings Ltd. ``With BAT as its biggest stake, the stocks should move in tandem.''

To contact the reporter on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net.

Last Updated: October 21, 2008 12:23 EDT