TD investor reaction to bank share dips
TD client trades in Lloyds, Barclays and RBS up almost 50% in a week which sees the Chancellor announce plans to ‘electrify' the ring-fence around UK banks.
Stuart Welch, CEO, TD Direct Investing comments: "Banking stocks took a brief hit on Monday after the Chancellor revealed plans to ‘electrify' the ring-fence around UK banks and give regulators the power to break up any that fail to reform.
"TD Direct Investing clients were quick to react to the falls, with trading activity among Britain's banking giants - Lloyds Banking Group (LLOY), Barclays (BARC) and Royal Bank of Scotland Group (RBS) - showing a near 50% week on week increase. The buy/sell trading ratio among these banks was relatively even with the exception of RBS, which our clients were trading at a buy/sell ratio of almost 1.5:1.
"Though RBS was the biggest faller on Monday (340.5p-328.6p), Lloyds has been the most popular buy among our clients over the past week (ending Monday, 4th February), accounting for 17.9% of TD's top ten, with RBS (13.5%) and Barclays (11.7%) the second and third most bought banking shares respectively.
"UK banks have a long way to go to restore trust among disheartened consumers following a raft of scandals that have hit the sector. It is generally hoped the new Bank of England Governor, Mark Carney - who is making his first appearance in front of Parliament tomorrow - will help to revive consumer confidence in the UK banking sector by applying the same standards of rigour and regulation that we have seen in the Canadian banking sector."
The TD Direct Investing (tddirectinvesting.co.uk) Top Ten Buys and Sells should not be taken as a recommendation to buy or sell any particular bond or stock, and it is not intended to offer any form of advice. Instead it is simply an indication of the general buying and selling trends amongst some TD Direct Investing clients, observed during the period stated.
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