TD Waterhouse reveals the most traded shares in 2007

TD Waterhouse, the award winning execution-only broker, revisits the twists and turns that impacted the financial markets in 2007 and takes stock of the sectors and companies that were singled out as hotspots by retail investors.

Top 10 Retail Investor Buys and Sells for 2007 (for the period to 14 December 2007)

BUYS (Company Name)
1 NORTHERN ROCK
2 PARTYGAMING
3 ROYAL BK SCOT GRP
4 BARCLAYS
5 BP
6 LLOYDS TSB GROUP
7 VODAFONE GROUP
8 BHP BILLITON PLC
9 BRADFORD & BINGLEY
10 GLAXOSMITHKLINE

SELLS (Company Name)
1 PARTYGAMING
2 NORTHERN ROCK
3 VODAFONE GROUP
4 BP
5 BARCLAYS
6 LLOYDS TSB GROUP
7 BHP BILLITON PLC
8 BT GROUP
9 ROYAL BK SCOT GRP
10 GLAXOSMITHKLINE

Top of the stocks:

Partygaming, the world's biggest listed online poker and gaming group saw strong trading activity this year, as 2007’s top sell and second most popular buy. Partygaming, which is incorporated in Gibraltar and exempt from UK government stamp duty, has been a firm favourite of TD Waterhouse retail investors since its high profile flotation in 2005. Changing gambling regulations on both sides of the Atlantic have had an impact on the company and its share price, ensuring its popularity with TD Waterhouse investors.

Northern Rock has vied for pole position with Partgaming as the most traded stock in 2007. As the frenzy around the troubled mortgage lender gained momentum in September, TD Waterhouse saw a month’s worth of new accounts opened in just a few days, helping propel the company to the top buy of 2007.

Angus Rigby, Chief Executive Officer, TD Waterhouse, comments: “It comes as no surprise that PartyGaming and Northern Rock take the top spots in both tables, although for very different reasons. While customers have been actively trading on PartyGaming throughout the year, Northern Rock's position is a result of the frenzied activity following the run on the bank in September.

"It is interesting to note that more people have bought than sold in Northern Rock and this can be attributed to the shares being bought in batches and sold in bulk. It does appear that some traders would rather hold onto their shares than cut their losses - only time will tell if that’s the right thing to do."

Banking on a volatile market:

Banks feature highly in this year’s table, as the term ‘credit crunch’ has become the in phrase for 2007. The global markets were increasingly volatile over the summer months and this prompted a surge of activity across both equities and derivative products. TD Waterhouse investors paid particular interest to banking stocks in the latter half of the year as their prices fell in response to global credit concerns.

BHP Billiton, the world’s largest mining company has enjoyed strong trading activity in 2007. Consolidation in the mining sector has been rife this year as the big players look to bulk up to compete with the growing influence of China. This year’s TD Waterhouse Investor Confidence Index also shows confidence of investors in the sector for the year ahead. Almost a quarter (24%) of active British traders and investors surveyed predicted that the energy and mining sector would be a top performer for the forthcoming months, up from 18% in 2006.

Looking forward to 2008:

The big regulatory change for 2007 was MiFID, but it passed many investors by. Next year will see new regulatory changes for ISAs, which come into effect from 6th April 2008. After 20 years PEPs will cease to exist, as they automatically become Stocks and Shares ISAs. In addition, holders of Cash ISAs will be able to convert Stocks and Shares ISAs to gain access to the highs and lows of the stock market. With more investors looking to invest in Stocks and Shares ISAs TD Waterhouse are helping them on their way with the introduction of a zero administration fee on ISAs with a portfolio valuation of £3,600 or more.

Rigby concludes: "It has been an eventful year by all accounts and despite growls from the markets, we're seeing more British investors than ever trading in stocks and shares. Online trading is gaining momentum and our research shows that the Internet remains a powerful source of information for investors, with 56% of traders consulting online sources to help them decide their trading activities. This is echoed at TD Waterhouse with 80% of trades now made online, an increase of 10% on the previous year.

“Our research also found that more investors are pinning their hopes on the drugs and healthcare sector in the forthcoming months to deliver the best returns on investment. This is a marked change from last year as investor confidence is dented in the property market for the first time. When we couple this with the downturn in house prices and the possibility of more interest rates cuts both forecast for 2008, this is a trend that could roll out further next year."