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Barclays Stockbrokers' clients continue to buy in volatile markets

13th May 2010 Print

A full week after the UK election, figures from Barclays Stockbrokers, the UK execution-only stockbroker, reveal that there has been a shift in the buy/sell ratio of equity trades. 

Clients are reacting to current market conditions and what they perceive to be buying opportunities. In recent weeks the buy/sell ratio has been around 58%, however on Monday 10 May this figure spiked to a high of 65% with banking, oil and gas sector stocks being among the most heavily purchased and on Wednesday 12 May, as the political picture became clearer, the buy:sell ratio skewed even further to the buy side with 67% of client equity trades being purchases as investors appeared to welcome the improved clarity around the UK political picture.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, comments: "We are seeing market volatility continue and therefore influencing our client trading trends. Yesterday morning the FTSE-100 initially opened slightly lower, but recovered quickly suggesting that markets realise the hard work is just starting in tackling the UK's economic and political problems.  Taking a broader look at the FTSE-100 it really has been a roller-coaster ride recently for the UK's main equity index.  Leading up to the election, we saw the FTSE 100 fall from a high of 5,553 on Friday 30 April down to 5,073 and is currently sitting at around 5,400. These market conditions are clearly influencing client trading behaviour and resulting in the uplift that we are seeing in the buy/sell ratio of our equity trading."