Resources stocks back in demand with retail investors

BP is most-bought stock as resources sector accounts for 58% of the TD Waterhouse top ten buys.

Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "The resources sector came under renewed focus this week for TD Waterhouse customers, accounting for over half of the top ten trades. As commodity prices fell on disappointing US housing data, retail investors took positions on mining stocks, oil producers and explorers in the week ended Tuesday 24th August.

"BP (BP) was our most traded stock this week; accounting for over a quarter (28%) of the top ten buys making it the number one buy of the week. BP also accounted for 15% of the week's top sells, putting it in second place after Lloyds Banking Group (LLOY). The oil major's share price sagged in a week when crude oil prices dropped below $72 per barrel, the lowest levels for over two months.

"Elsewhere in the oil sector, Falklands-focused oil explorer Rockhopper Exploration (RKH) climbed to fifth from last week's eighth position in our top ten sells after announcing that its Ernest prospect in the North Falkland Basin has not found hydrocarbons. Aberdeen-based Dana Petroleum (DNX) entered the sells list in ninth position after Korea National Oil Corporation launched a hostile takeover bid which lifted the share price by 6%. The state-run oil firm claims it has the support of just over 48% of shareholders for the offer. Gulf Keystone Petroleum (GKP) also benefitted from interest in oil explorers, placing it fifth on the buys and fourth on the sells.

"Mining stocks also attracted our customers' interest in a week filled with merger and acquisition activity. Xstrata (XTA) re-entered the top ten buys in fourth position and rose from tenth to eighth on the sells list, after the resources giant made an offer for West African focused iron ore company Sphere Minerals. Russian mining group Petropavlovsk (POG) entered the buys as our eighth most bought stock after asset manager BlackRock increased its stake in the group.

"Kazakh mining group Eurasian Natural Resources Corp (ENRC) just made the top ten buys in tenth position after purchasing African mining assets from an Israeli mining entrepreneur. Finally, Vedanta Resources (VED) entered the buys list in ninth place, after the Indian steel and mining firm had its long term issuer default rating downgraded by rating agency Fitch in response to its $9.6bn bid for Cairn India."