TD Waterhouse unveils the most traded shares in 2008

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "What a difference a year makes! A frenzied year for the global markets has resulted in an equally frenzied year of trading activity by TD Waterhouse customers. Overall, our annual top ten for 2008 represents a 58% increase in trades compared to the same period last year. There have been 61% more buys than sells and the banks dominate, accounting for 71% of our customers' top ten trades in 2008.

"This year the top four positions in both the buys and sells tables are occupied by the same four banks; Royal Bank of Scotland (RBS), Barclays, Lloyds TSB and HBOS. Looking at the trades in more detail, we have seen buy activity in all four banks outweigh sell activity by 67%, indicating that customers still look for value in falling share prices.

"Top of our stocks for 2008 is Royal Bank of Scotland, who has also been a regular feature in our weekly top ten trades' lists for most of the year. In April RBS tried to raise some much needed cash by persuading shareholders to take up its £12bn rights issue, a mere six months later and they found themselves running out of cash again and turning to the government's £500bn ‘bank bail out' package. By late November the government, and in turn the UK taxpayer, owned a 58% stake in RBS.

"HBOS faired no better this year and within a few months of its own, less successful, rights issue the bank was in talks with Lloyds TSB. Although the government backed merger has faced fierce opposition in some quarters shareholders of both banks eventually approved the merger and the New Year should bring a new ‘superbank' to the UK high street.

"Our top four banks and their shareholders will all be hoping to avoid the fate of last year's top ten buy, Northern Rock, which was nationalised at the end of February; and Bradford and Bingley, who features in both this year's annual buy and sell tables. This gives some indication of the heavy trading in the former building society (the last former mutual to have remained independent) before shares were suspended on 29th September. Bradford and Bingley finally succumbed to the economic climate like many banks across the globe this year, and 150 years of banking heritage were brought to a close as its mortgage book was nationalised and its savings business and branches were transferred to Banco Santander.

Confidence in the financial services sector falls

"In contrast to last year the Financial Services sector as a whole has suffered a huge drop in confidence, falling to 16th place in our Investor Confidence survey for 2008 (compared to 2nd place in 2007). Nevertheless, avid trading activity among our customers clearly shows that people still have an appetite to invest despite the number of high profile casualties we have seen across the globe this year. When asked which sectors people thought would perform the best in early 2009, respondents heralded the Energy and Mining sector.

Other sectors feel the effects of the credit crunch

"House builders Taylor Wimpey and Barratt Development enter our annual top ten trades list for the first time this year. The housing sector as a whole has suffered in 2008 and government figures issued in the last week indicate that the number of new homes built this year fell to 120,000, its lowest levels since 1924. This figure is set to fall even further in 2009 to below 80,000 and analysts predict Barratt Development and Taylor Wimpey could eventually resort to debt-for-equity swap deals if they are to reduce their huge debts next year.

"In 6th position in our annual top ten buys table sits BT Group. The former state telecoms group still faces structural challenges according to JP Morgan, which pointed to its slowing broadband, mobile broadband, and falling corporate spending and pension overhang as the culprits.

"Nevertheless, the group has outperformed the sector since its profit warning and respondents of this year's Investor Confidence survey chose BT as the second most popular investment option (after Tesco) if they had a spare £5K to invest at the end of 2008. It will be interesting to see how BT performs next year in an environment that has seen some of UK's largest and oldest companies disappear from the high street.

The changing face of the UK high street

"The effects of the credit crisis have impacted businesses across the globe and the UK high street is changing on an almost weekly basis. As Woolworth's closes the doors on more than 200 stores for the last time, Zavvi, Whittards and menswear outlet Officers Club have all announced that they are looking for buyers. At the time of writing childrenswear chain Adams has fallen into difficulty and it is expected that they could be the first high street casualty for 2009.

Investors look to the future

"In a year of doom and gloom, our research has found that confidence in the UK stockmarket has fallen in 2008 with 64% of respondents are less confident in the UK market than they were 12 months ago. However, as one door closes another opens. Investors are remaining resourceful and willing to broaden their horizons in order to seek out new investment opportunities. International investment goes from strength to strength with the number of UK investors holding shares in international companies increasing by 17% to 46% in 2008 - and this is a trend that looks set to continue for 2009."

TD Waterhouse is one of the UK's leading execution only brokers with trading rates starting from £9.95. For more information about online trading or longer-term investment opportunities, visit tdwaterhouse.co.uk

TD Waterhouse Top Ten Retailer Buys 2008
1 ROYAL BK SCOT GRP
2 BARCLAYS
3 LLOYDS TSB GROUP
4 HBOS PLC
5 BRADFORD & BINGLEY
6 BT GROUP
7 TAYLOR WIMPEY
8 VODAFONE GROUP
9 BRITISH AIRWAYS
10 BARRATT DEVELOPMENT


TD Waterhouse Top Ten Retailer Sells 2008
1 ROYAL BK SCOT GRP
2 BARCLAYS
3 LLOYDS TSB GROUP
4 HBOS PLC
5 VODAFONE GROUP
6 BRITISH AIRWAYS
7 BRADFORD & BINGLEY
8 BP
9 BARRATT DEVELOPMENT
10 BT GROUP