Buy trades exceed sells for first time since February
Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "For the first time this month, buy trades exceeded sells (15%) among our most heavily traded stocks as the FTSE rose ahead of The Budget and amid optimism the UK economy is rebounding from the worst global economic slump since World War Two.
"Banks accounted for more than half of trades among the top ten stocks in the week ended Tuesday (23rd March), with Lloyds Banking Group the most popular trade, after the lender said it expects to return to profit this year. Lloyds accounted for more than half the buy and sell trades in bank stocks during the week, following the trading update issued on Friday. The upbeat statement also buoyed sentiment around the other UK banks, with Royal Bank of Scotland and Barclays maintaining their positions amongst the most popular stocks with TD Waterhouse customers.
"Mining and energy stocks also maintained a significant presence among the top ten, including more strong interest in two of the oil explorers operating off the Falkland Islands, Desire Petroleum and Rockhopper Exploration. Desire shares were the third most-popular buy trade among TD Waterhouse customers, while Rockhopper shares were the ninth, amid ongoing speculation Desire will report that it found oil in the South Atlantic, boosting prospects for other strikes elsewhere in the region.
"There was less positive news for Rio Tinto, which was the seventh most popular sell trade among our customers as a number of its executives went on trial in China. Xstrata was also a popular trade, representing the fifth most-popular buy and the fourth most-popular sell trade overall.
"Away from the banks and the resources stocks, Healthcare Locums was a new entry to the top ten, coming in as the tenth most-popular buy trade among TD Waterhouse customers. The specialist health and social care recruiter announced full-year profits on Tuesday that were below market expectations because of a change in accounting methods."