TD Waterhouse customers look to mine profits

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "TD Waterhouse customers are, as usual, consistent with their tracking of market movements and price performance to ensure they make the greatest return on their investments.

"This week, there has been trading activity surrounding Xstrata's bid for platinum mining firm Lonmin. Our customers are clearly looking for an opportunity to make returns as Lonmin's key 17% investor, M&G, rebuffed the hostile bid by Xstrata which values Lonmin at £5bn. The £33-per share offer made by Xstrata was at a 42% premium to current share-price performance, but as Lonmin Chairman Sir John Craven has said, represents a significant discount on recent performance and an opportunistic move to capitalise on current market volatility.

"We also see a continued focus of trading activity centred on the major banks as they continue to fall towards the bottom of the market. RBS and Lloyds TSB both closed 2.4% lower on Tuesday to 239.5 and 321.3 pence per share respectively.

"RBS occupies the top-spot on both the buys and sells charts this week, following last week's reporting of £691m pre-tax losses for the first half of 2008. The bank's stock has fallen 60% since last year's high, twice the decline across the banking sector as a whole and, given the bank is the UK's second largest by market capitalisation; questions are arising amongst analysts as to whether changes need to be made in the management team. Sentiment seems to suggest that the incumbent Sir Fred Goodwin is probably still the best man for the job, but there are concerns that no plans for his succession seem to have been made.

"Finally this week, mention should be given to Barratt Developments. The house builder makes an appearance in both the buys and sales of TD Waterhouse customers. As the government re-thinks potential policy changes regarding stamp duty, the property developer continues to sit at the top of both the buys and sells tables. The firm been a consistent feature to the table as the stifled property market continues to struggle."

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