TD Waterhouse customers desire oil
Oil explorers and banks remain popular as markets brace themselves ahead of FED decision.
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "AIM listed Desire Petroleum (DES) proved popular with our customers as it hit the top spot in both the buys and sells tables, accounting for more than a fifth of all top ten trades in the week ended 2 November. Energy giants BP (BP) and BG Group (BG) helped boost energy stocks following positive third quarter results despite the markets bracing themselves ahead of the Federal Reserve's (FED) looming decision on Quantative Easing.
"BP - which came in eighth and sixth in the top ten buys and sells respectively - posted impressive third quarter results as the oil major beat forecasts and hit a replacement cost profit of $1.84bn. This was compared with a loss of $17bn in the previous quarter and a profit of $4.98bn in the third quarter of 2009. The company said the underlying business remains strong, despite the spill and its costs which are currently nearing $40bn. This was in conjunction with BP's asset disposal programme which is progressing well with sales agreements in place totaling around $14bn, out of a total $30bn worth of assets earmarked for sale by the end of 2011.
"Oil and gas minnow Gulf Keystone Petroleum (GKP) clawed its way up the top ten buys to fifth place after it announced that initial results from its Sheikh Adi 1 well have been encouraging with a high hydrocarbon saturation. However the AIM listed company also announced that hole instability is preventing it from starting production which led some TD Waterhouse customers to sell out of the explorer as it re-entered the sells table in third place.
"Desire Petroleum relegated Lloyds Banking Group (LLOY) to second place in both tables as the banking group confirmed that bad loans were down and it was on course to make its first annual profit since 2008. The government bailed-out bank reported a steady third quarter as its core banking business reported better margins and that bad debt was being kept under control.
"Meanwhile, the world's biggest integrated zinc producer, Xstrata (XTA), entered the top ten buys table in ninth place as it stated that it had got approvals from the state government of Queensland to proceed with expansion of its George Fisher mine which could boost output by 30 per cent by 2013."