Trading of bank stocks surges on Basel III agreement

Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "TD Waterhouse customers continued to increase their trading activity as the FTSE 100 resumed its rally in the week ended Tuesday 14 September. Banks returned as the main focus for investors, accounting for 53% of all trades, as the top three banks outperformed the FTSE 100 after the Basel III agreement on bank regulation turned out to be less onerous on the sector than was feared.

"Barclays (BARC) was the week's most-bought stock as it was announced that Barclays Capital chief Bob Diamond will take the helm of the overall banking group next year. The bank also dropped from second to third on the sells list. Lloyds Banking Group (LLOY), meanwhile, was the most-sold stock for the eighth week in a row and climbed from fifth to second place among the buys, as a UBS analyst argued that the bank was "over-capitalised" after last year's £13.5bn rights issue.

"Selling energy and mining stocks was also a popular trade among TD Waterhouse customers, with the resources sector accounting for six of the top ten sells. BP (BP) stock had a volatile week as the oil giant said that it would delay its third quarter results announcement by a week because of difficulties in calculating the cost of the Gulf of Mexico spill. BP remained in fourth place among the sells and dropped from second to sixth among the buys. Mining firm Xstrata (XTA), and oil explorers Encore Oil (EO) and Desire Petroleum (DES) took the fifth, eighth and tenth positions respectively among the sells.

"Gulf Keystone Petroleum (GKP), however, shot up from tenth place to third on the buys list, after its share price rose 12% on strong interim results. The oil explorer also rose from eighth to sixth on the sells.

"UK-based minerals firm Herencia Resources (HER) made its debut in the top ten at seventh place among the buys and ninth among the sells after tests showed high copper and silver grades at the firm's Paguanta project in Chile.

"Finally, two tech stocks re-entered the buys list this week. Microchip designer Arm Holdings (ARM) took eighth place in a week when RBS reiterated its "buy" recommendation on the firm and Arm's directors and executives sold off shares, while video search service provider Blinkx (BLNX) re-entered in ninth place after the announcement of two new partnerships with video publishers buoyed its share price."