Banks attract investor interest as FTSE climbs
Banks account for half of total top ten trades and resources make up half of sellsDarren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "The banking sector proved popular with TD customers this week, with banking stocks accounting for 52% of the top ten buys. Overall, buys outnumbered sells by a ratio of two to one as strong results from Wall Street and UK companies nudged the FTSE slightly higher in the week ended Tuesday 31th August.
"Barclays (BARC) was the top buy and fourth most-sold stock after market rumours emerged that the bank may raise capital by issuing around ¥100bn (£770mn) of Samurai Bonds. Royal Bank of Scotland (RBS) was the most traded stock overall, taking second position on the buys list and third among the sells, as speculation grew that it may soon sell off its insurance unit, which must be divested by the end of 2013 according to EU rules. Lloyds (LLOY), meanwhile, topped the sells for the sixth consecutive week and dropped from second to fourth position in the buys.
"While buying was very much investors' strategy of choice, this week's trading figures also show that selling resources stocks was also a popular trade among our customers, with energy and mining firms accounting for almost half of overall top ten sells. Encore Oil (EO) shares jumped 17% on positive test results from an appraisal well in the Northern North Sea, with increased investor interest pushing the oil explorer to sixth in the buys and fifth in the sells. Meanwhile, BP (BP) dropped from first to third place among the buys but retained second place among the sells, as oil prices eased and the oil major confirmed that it no longer plans to bid for a licence to drill in the Arctic.
"Global resources company BHP Billiton (BHP) crept into the buys at ninth position this week as investors followed developments in its $39bn (£25.2bn) hostile bid for Canadian fertiliser producer PotashCorp. Xstrata (XTA) dropped out of the top ten buys but stayed in eighth position on the sells list, after Swiss commodities firm Glencore, its major shareholder, announced strong interim results.
"Looking away from banking and resources stocks, microchip designer Arm Holdings (ARM) entered the sells in seventh place this week after renewed takeover speculation saw its share price jump 11%. Intel has assured the firm that it will continue to support its chip designs. Finally, BAE Systems (BA) entered the buys in tenth position after winning a $629mn contract from the US military to develop mine-resistant vehicles."