Retail investors look for bonuses in the banking sector

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "It seems our customers have started the new year in a buying mood as the volume of trading in our weekly top ten trades is 48% higher than last week, with buys 24% ahead of sells. The banking sector accounted for almost two thirds (61%) of the overall top ten as Lloyds Banking Group (Lloyds) and Royal Bank of Scotland (RBS) leaned strongly in favour of buys this week.

"As UK banks jumped to defend their bonuses against the Government's proposed super tax, Lloyds proved to be the most popular trade this week, accounting for almost a quarter (24%) of the top ten buys and sells. Buys were markedly (28%) ahead of sells as the chief of the 43% state owned bank, Eric Daniels, reiterated his claim that his £1million annual salary was ‘modest'. Daniels went on to defend the ill-fated decision to take over heavily indebted HBOS, which resulted in a £23billion government bailout to pull the bank back from the brink of collapse.

"Our customers also traded heavily in RBS, which accounted for 21% of the overall top ten. Buys climbed 45% higher than sells as the bank put forth its case on the importance of bonuses in the interest of retaining and motivating top bankers. Earlier this month the banking giant announced an agreement to sell some of its fund management assets and contracts of RBS Asset Management to Aberdeen Asset Management in a deal worth £84.7million that is expected to complete during the first quarter of this year.

"Meanwhile investors appear to have been blown away by the Government's proposal to open nine offshore green-energy sites as wind power firm Sea Energy made its first appearance in the top ten. Shares in the firm were boosted 15% to 81.5p on Friday (8 Jan) as its subsidy Sea Energy Renewables was awarded a 25% stake in the 1.3GW Moray Firth Zone in Northeast Scotland by owner The Crown Estate. The Government aims to produce 32 gigawatts of energy a year - approximately 25% of the UK's electricity needs - through the use of wind farms.

"However, shares in Sea Energy fell on Monday following news that it is granting 1.98million share options, including 1.34million to directors, which saw buys in the firm climb 36% higher than sells. If exercised, the options, which have an exercise price of 72 pence will increase Sea Capital's share capital by around 2.9%."