TD Waterhouse customers look to oil explorers
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "Oil and gas explorers captured the attention of TD Waterhouse customers this week, making up 46% of our top ten buys, as investors reacted to positive test results and corporate developments in the week ended Tuesday 5 October.
"Encore Oil (EO) jumped from fifth to second in the buys after announcing promising results from a sidetrack well in its Cladhan oil field in the North Sea. Meanwhile, AIM-listed Caza Oil & Gas (CAZ), a Texas-based oil explorer focused on the US southwest, placed eighth in both the buys and sells after its share price was lifted by new finds at its 158 #1 well in Texas.
"In addition, two oil explorers entered the top ten this week following the departure of senior management. UK-registered oil firm Nighthawk Energy (HAWK), which has operations across the US mid-continent, entered both the top ten buys and sells in seventh position after its founder and managing director David Bramhill retired from the industry, causing Nighthawk's share price to wobble. Regal Petroleum (RPT) placed fifth on the buys after chief executive David Greer stepped down following poorer than expected production from the firm's Ukrainian gas wells.
"Other popular oil exploration stocks include North Sea-focused Xcite Energy (XEL) and Central Europe-focused Matra Petroleum (MTA), which propped up the buys in ninth and tenth place respectively.
"Energy and mining trades in general remain firm favourites across the board with our customers, accounting for 62% of the week's overall top ten trading activity. Selling BP (BP) was the most popular trade this week, accounting for 31% of sells, after the oil major pledged some of its assets in the Gulf of Mexico as collateral towards the $20bn claims fund set up in the aftermath of the Deepwater Horizon oil spill. BP's share price recovered 6.5% over the week to close at 432.5p on Tuesday 5 October.
"Outside of the resources sector, TD Waterhouse customers continued to focus on the banking sector as think-tank, the New Economics Foundation, published a report suggesting that a further round of bank bailouts may be required in 2011. Barclays (BARC) was the most-bought stock overall, accounting for 20% of our top ten buys, and also placed fourth on the sells list. Lloyds (LLOY) was the second most-sold stock behind BP, also placing third among the buys, while RBS (RBS) was sixth among the buys and third among the sells."