Banks dominate trading ahead of reporting season

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "Bank stocks dominated trading this week ahead of the announcement of interim earnings by three of the largest players in the sector: Lloyds Banking Group (LLOY), Barclays (BARC) and Royal Bank of Scotland Group (RBS). The three high street lenders accounted for more than half (54.5%) of our top ten buy and sell trades during the week ended Tuesday 3rd August as TD Waterhouse customers took positions before the reporting period.

"Lloyds, the first of the three to report earnings on 4th August, took pole position and accounted for over a quarter of both the top ten buys (26.2%) and sells (26.5%) as the bank's stock rose on optimism about the results. The announcement on Wednesday showed a return to profitability and a pre-tax profit of £1.6bn in the first six months of the year (compared to a loss of £4bn during the same period last year).

"Barclays also improved its position in both top tens ahead of its own interim announcement today. The bank reported an increase in profits of 44% to £3.95bn for the first half of the year, the majority (£3.4bn) of which came from its investment arm Barclays Capital. All eyes will now be on RBS, which issues its interim report tomorrow.

"BP plc (BP) was the only non-lender to break the banks' stranglehold on the top three positions, finishing the week as the second most-bought stock at 15., as its shares rose in the aftermath of the resignation of CEO Tony Hayward and the announcement of its quarterly loss.

"In other sectors, Taylor Wimpey (TW) claimed seventh position in the top ten buys and the same position among the sells, as the UK's second-largest housebuilder announced on Tuesday that it had moved back into profit in the first half of the year. While Yell Group (YELL) re-entered the top ten buys in fifth position after the publisher of the Yellow Pages directories reported revenue in line with guidance and re-iterated second-quarter expectations.

"Among the smaller companies, the ever popular Gulf Keystone Petroleum (GKP) held on to its position in both top tens, while dual ASX and AIM-listed Range Resources (RRL) took ninth position among the buys and the sells after the company posted its latest quarterly activity update. Finally, Petro Matad Ltd. (MATD) entered the top ten sells as the company, the first substantially Mongolian owned business to list on an international bourse, updated investors on its drilling programme in Mongolia."