Investors turn to banking sector as bosses bin bonuses
Angus Rigby, Chief Executive Officer, TD Waterhouse Comments: "Overall trading volumes increased slightly (4%) on last week as the banking sector dominated (59%) the top ten following a series of high profile bankers waiving their contractual bonuses for the year.
"Lloyds Banking Group was the most popular trade overall accounting for 23% after its chief executive, Eric Daniels, became the latest banker to surrender his £2.3 million payout for the second consecutive year - following competitors Barclays and Royal Bank of Scotland. Trades in Barclays followed closely accounting for 21% after the banks chief executive, John Varley, and president, Bob Diamond, lead the wave of the bonus forfeiting despite the bank meeting its targets for last year and reporting better than expected profits before tax last week.
"TD Waterhouse customers also kept a close eye on the mining sector, which accounted for more than a third (35%) of the overall top ten. Desire Petroleum climbed to third and fifth place in the top ten buys and sells respectively - holding more than a quarter (26%) of the top ten mining trades. The British exploration company accounted for 13% of the overall top ten buys as it began drilling at its first well offshore of the Falkland Islands despite protests from Argentina, which first waged war on Britain back in 1982 over the sovereignty of the Malvinas region. Drilling the 3,500 metre well at project ‘Liz' is estimated to last for 30 days.
"Pharmaceutical giant GlaxoSmithKline reached ninth place in this week's top ten buys as customers took advantage of a 35.50p drop in its share price over the week. Shares fell on Monday on the news that it has run into problems with its diabetes drug Avandia. A report released by the US Senate points to studies conducted by the US Food and Drug Administration (FDA) calling for the treatment to be taken off the market due to a possible link to heart illness - a claim strongly refuted by Glaxo. However, sales of the drug have been heavily hit since the news broke on Monday. This is the latest controversy to affect Glaxo after it was left needing to defend its bestselling asthma drug Advair when the FDA proposed changes to the labeling system of asthma medications which contain long-acting beta-agonists (LABAs) last week. The US regulator advises against prolonged use of LABAs."