Mixed banking results cause surge in retail trading

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "Overall trading levels soared this week - increasing by 46% compared to last week - as customers continued to buy into the banking sector. Banking stocks accounted for almost three quarters (74%) of overall trades as customers reacted to a mixed bag of interim trading announcements. Activity reached its peak on Thursday and we broke the record for web trades despite August being traditionally known as a quiet month in terms of activity.

"RBS was the most popular top ten trade, accounting for more than a third (34%) of overall activity. Buys in the part-nationalised bank accounted for 41% of the top ten buys as bargain-hungry customers scooped up the shares as they fell 12% on the back of the banks £1bn net loss announcement. In contrast, Lloyds Banking Group claimed 38% of the top ten sells as the banks rising share price may have allowed other customers to take profit. Shares climbed above 104p on Thursday as Lloyds insisted its £4bn losses for the first half of the year signaled the worst of its write-offs with trading looking up. The bank is now mulling over a multimillion pound rights issue to enable it to partially withdraw from the Government's asset protection scheme - after concerns that the schemes £16bn fees are too high.

"Meanwhile, Gulf Keystone Petroleum made its first appearance into the top ten, creeping into fourth place of both buys and sells. Customers traded heavily in the oil and gas exploration company after it confirmed a significant oil discovery in Northern Iraq. Shares peaked to an annual high of 34.25p last Friday as early indications suggest the Shaikan-1 exploration well could produce 5,000 to 8,000 barrels of oil a day.

"Sterling Energy also entered the top ten sells as our customers may have been looking to cash in on the company's recent share price hike. Shares soared as much as 77% on the back of Gulf Keystone Petroleum's news and Sterling also announced recently that it is considering a significantly discounted placing of new equity while continuing talks with third parties regarding a take over or sale of assets."