TD Waterhouse customers react to Stagecoach’s relegation struggle

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "Overall, trading has remained steady and there is only a 9% difference between our top ten trades this week, with sells marginally outweighing the buys. We also have a first time entry to our top ten buys as Stagecoach Group face a relegation struggle only three months after being promoted to the FTSE 100.

"Stagecoach Group, the international transport company with operations in UK, USA and Canada, is facing a knock-on effect from the ongoing economic crisis here in the UK. There have been concerns that City job losses could impact its South West Trains franchise and the possible reason for the company's share price to wobble of late. The stock currently stands at 134p following its most recent high of 333p at the beginning of September. TD Waterhouse customers, perhaps sensing a bargain, have responded by snapping up the stock and making the company our fifth most popular buy this week.

"The housing market continues to be in the news this week. As house prices continue to waver the CML (Council of Mortgage Lenders) is considering whether to publish its forecast for next year because of the low level of transactions in the market. These ongoing concerns have not deterred our customers, whose attention has focused once again on Taylor Wimpey and Barratt Development. Both companies are in the ninth and tenth most popular buy positions this week, accounting for just over 1 in 10 (11%) of this week's top ten buys.

"Meanwhile, banks dominate the tables once more with Barclays, Royal Bank of Scotland, Lloyds TSB and HBOS accounting for over half (51%) of this weeks top ten trades. New developments in the proposed Lloyds TSB / HBOS merger make this a crucial week for both banks. Although 96% of Lloyds' shareholders voted in favour of the deal, HBOS has recently faced a revolt from campaigners who are calling the deal ‘anti-competitive' foreseeing a high risk of job losses and branch closures. HBOS have countered these claims by warning that it will face nationalisation if the deal is not approved by shareholders.

"In the mining sector, job losses have become a reality for Rio Tinto employees as the company announces restructuring to cut 14,000 jobs, combine its two London offices and defer some of its exploration projects to reduce its debt by $10bn dollars over the coming year. Rio Tinto is the world's third largest mining firm employing 97,000 people globally and has featured regularly in our top ten trades after rival BHP Billiton dropped its takeover bid last month. After featuring as our number one buy last week our customers may have sensed something was around the corner with mixed trading on Rio Tinto this week, which appears as our fourth most popular buy and sell with almost equal trades."