Retail investors switch tack on Barclays
Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "The overall top ten buys were once again 28% ahead of the sells this week, indicating continued healthy trading activity among our customers. Banks have been dominating the tables, accounting for 57% of this week's top ten buys and claiming over half (55%) of overall top ten trades, with customers switching their trading strategy for Barclays stock."In an interesting reversal of positions, Barclays has regained its stronghold of the top buys, moving up four positions to return as the third most popular stock bought this week, while it fell four positions to seventh place in the sells - slipping into the exact inverse of its positions in both tables last week. With a buy to sell ratio of 3:1, the surge in buying activity could be down to our savvy and informed customers keeping track of two key news stories that resulted in several deep plunges in the bank's share price over the week.
"The banking giant has been fined £2.45 million by the City watchdog for ‘serious weaknesses' in failing to report millions of trades that could have provided evidence of market abuse. The penalty is the eighth largest ever imposed by the Financial Services Authority (FSA) and the biggest for transaction reporting failures. The regulator spotted the systems and controls failures at Barclays Capital while investigating insider trading by a third party last year.
"Meanwhile, on Monday the blue eagle began a legal challenge against a decision by the Competition Commission to ban the sale of payment protection insurance (PPI) alongside credit cards and loans. The commission had recommended back in January that from 2010 banks and retailers making a loan or credit offer must wait a week before they can sell PPI. This followed a two-year investigation into the sale of the insurance, which covers debt repayments if a borrower cannot work because of accident, sickness or unemployment. However, Barclays lodged an appeal with the Competition Appeal's Tribunal in April, arguing the curb on sales is not justified by the evidence that the commission has provided.
"The group is being supported by Lloyds Banking Group, in which the Government holds a stake, and Shop Direct Group Financial Services, which owns the Littlewoods catalogue business. The hearing is expected to last four days, although a judgment isn't expected for several months.
"Finally a newcomer has jostled the top ten tables this week. Kopane Diamond Developments - a growing diamond mining company with substantial production and development assets in Lesotho, Southern Africa, and over one million carats per annum target production - has climbed into ninth position in the buys.
"The company, formerly known as European Diamonds PLC, saw its shares explode on Monday morning - jumping more than 100% after several press reports suggested the company was about to announce a significant resource statement for its ‘Main Pipe' kimberlite in Lesotho. The company has acknowledged the movement in the share price, but no further comment has been made in relation to the speculation. Kopane has instead referred investors to its previous independent Definitive Feasibility Study for the Main Pipe which was detailed on the 17th November 2008. This report noted a 79% improvement in estimated resource tonnage since its previous pre-feasibility report in 2007. Kopane's share price continues to rally as traders anticipate a positive resource statement in the near future."