TD Waterhouse customers target resources stocks
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "TD Waterhouse customers focused heavily on the resources sector in the week ended Tuesday 21 September, with energy and mining companies taking up seven places on both the top ten buys and sells tables. Overall trading of resources stocks was up 78% from the previous week, with buys outnumbering sells by a ratio of 3 : 2.
"Gulf Keystone Petroleum (GKP) was the most traded resources stock among TD Waterhouse customers, reaching second position in the buys and third in the sells, after an unconfirmed report claimed that the AIM-listed Iraq-focused oil explorer is looking to graduate to the main market of the London Stock Exchange.
"Falklands-focused oil explorers Rockhopper Exploration (RKH) and Desire Petroleum (DES) attracted attention after Rockhopper announced positive results from its Sea Lion discovery well in the North Falkland Basin. Desire Petroleum placed third in the buys and fourth in the sells, and Rockhopper fourth in the buys and fifth in the sells, as both companies' share prices surged. Argos Resources (ARG), another Falklands-based oil explorer, entered the buys in tenth place.
"Other popular oil and gas stocks included BP (BP), which nudged one place higher to fifth among the buys and dropped from fourth to sixth among the sells. Encore Oil (EO) slipped from eighth to ninth on the sells list, while oil explorer Xcite Energy (XEL) entered the buys list in eighth after announcing plans to issue new share capital.
"Gold prices continue to hit new highs, reaching a record settlement of $1,273.80 per ounce on Thursday 16 September, which increased TD Waterhouse customers' interest in mining companies. South African gold mining firm Central Rand Gold (CRND) entered the buys in ninth place as its share price rose in line with record gold prices. Australian minerals exploration firm Centamin Egypt (CEY), which owns the Sukari gold project in Eastern Egypt, entered the sells in tenth after increasing its reserves figure by 28%, which boosted its share price.
"While the resources sector dominated trading overall, weakness in the banking sector dragged the UK's benchmark FTSE 100 index to a negative finish on Friday 17 September, with Barclays (BARC) and Lloyds (LLOY) retaining their positions at the head of the buys and sells respectively."