Buys increase as global recovery fears impact FTSE

Drill results drive oil exploration shares; Connaught profit warning draws buyersAngus Rigby, Chief Executive Officer, TD Waterhouse comments: "Buy trades jumped by more than a fifth this week, while sells fell by more than half, as TD Waterhouse customers took advantage of a decline in the FTSE100 spurred by new fears about the pace of the global recovery and the financial health of Europe's banks.

"Oil exploration stocks remained popular, driven by news from wells as far apart as New Zealand and the North Sea, while Connaught plc (CNT) entered the top ten as public spending cuts in the Emergency Budget led the social housing provider to issue a profit warning.

"Trading volumes in BP plc (BP) continued to return to more normal levels in the week ended 29 June, though the super-major remained at the head of the top ten buys list amid speculation that the company may be a takeover target. Buy trades in BP stock outnumbered sells by more than four to one as the company lost its position at the head of the top ten sells list to Lloyds Banking Group (LLOY).

"Banking stocks accounted for much of the increase in buys this week, with buy trades in Barclays (BARC) more than trebling, while buys in Lloyds stock more than doubled. Connaught entered the top ten buys list in eighth position as TD Waterhouse customers took advantage of a slump in its shares following the profit warning on Friday afternoon.

"Speculation around various drilling results helped to keep the energy exploration sector in focus, with oil juniors accounting for more than half of the top ten sells list. Rockhopper Exploration (RKH) moved up to number four, while fellow South Atlantic junior Falkland Oil & Gas (FOGL) joined both the top ten buys and top ten sells ahead of results from its Toroa well expected in early July.

"Encore Oil (EO) was prominent among the buys and the sells after drilling showed its Catcher discovery could be the largest in the North Sea in years, while Kea Petroleum (KEA) remained in the top ten sells after the company said Friday it has decided to suspend its Beluga-1 well in New Zealand and drill a deviated hole targeting potentially more productive sands."