Sells lead increase in trading in wake of bank earnings
Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "Overall trading by TD Waterhouse customers jumped by 50% this week as the FTSE 100 traded above 5,400 points following a series of profit announcements by high street lenders, and as oil supermajor BP plc (BP) found new buying support.
"Sell trades among our customers most popular stocks rose 52.4% in the week ended Tuesday 10th August, while buys rose 48% - with BP, Royal Bank of Scotland Group (RBS) and Lloyds Banking Group (LLOY) taking the top three positions in both lists and accounting for 55.5% of our overall top ten trades for the week.
"Trading in financial stocks rose 52% amid earnings announcements by the three main high street lenders - RBS, Lloyds and Barclays (BARC). Overall, financial stocks were the dominant sector in this week's trading activity, with sells increasing across all three banks, although Barclays and RBS also saw an increase in buys. Lloyds held on to pole position in the top ten sells, with sell volumes for Lloyds stock almost double those of the next most-sold stock, RBS.
"Among other financial services companies, Aviva plc (AV) re-entered the top ten buys and top ten sells after the insurer reported a 21% increase in operating profit and said that it expects to generate £1.5 bn of capital this year.
"BP leapt back to first position in the top ten buys list this week as shares in the oil company continued to climb from their lows reached in late June following the Gulf of Mexico oil spill. The increase in buy trades came as the Financial Times reported the results of a poll that showed Britons are more supportive of the company than their counterparts overseas.
"Connaught plc (CNT) remained heavily traded at fifth in the top ten buys and seventh in the top ten sells as shares in the support services company continued to plunge on concern about the impact of government public spending cuts. Housebuilder Taylor Wimpey plc (TW) also remained a popular trade in the wake of its first-half earnings announcement on 3rd August.
"Elsewhere, Unilever plc (ULVR) was a new entry to the top ten buys after the owner of the Flora, Persil and Ben & Jerry's brands, announced a smaller-than-expected increase in second-quarter sales.