TD customers bank oil in 2010
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "As 2010 draws to a close it is clear from our annual top ten that TD Waterhouse customers have chosen to focus on banking and resources stocks which have concurrently helped the FTSE draw ever closer to the elusive 6,000 mark. In fact, as the FTSE moves nearer to its pre-crisis levels it appears that traders are returning to levels of confidence not seen since prior to the crash of 2008 - as suggested by the 2010 TD Waterhouse Investor Confidence Index.
Falklands failure?
"Oil explorers have had an interesting year with the promise of Falklands' finds helping boost smaller AIM stocks Desire Petroleum (DES) and Rockhopper Exploration (RKH) which have entered our Annual Top Ten table for the first time. Desire shares piqued investor interest on the back of drilling in its Rachel North well, which proved to contain mainly water. This failure did not dent Desire or Rockhopper's ambitions in the area though as they announced ambitious drilling plans for 2011.
Black swan for BP
"However, perhaps one of the most high profile companies of 2010 has been BP (BP) which climbed our annual top ten buys table from eighth position last year to second position this year, accounting for just over 17% of the top ten stocks bought by TD Waterhouse customers in 2010.
"Shares in BP hit a 14 year low in June when they more than halved in price from 20 April (644.07p) to 308.25p (on 28 June) following the Deepwater Horizon rig explosion. Once the Gulf of Mexico disaster took hold the stock struggled as analysts attempted to estimate the cost of the clean-up efforts and the US government threatened to impose large penalties on the company. However, BP set aside US$39.9bn to cover the spill and began to dispose of its assets which helped the oil giant's shares rally to close on 21 December at 472.45p.
"It looks like retail investors will also be putting their money on BP in 2011 according to the TD Waterhouse Investor Confidence Index. The independent survey findings showed that BP would be the top pick if investors had £5,000 spare to invest in a single stock next year.
Banking on the banks
"Banks remained popular with our customers in 2010, with trades in Lloyds Banking Group (LLOY), Barclays (BARC) and Royal bank of Scotland (RBS) accounting for over half (51.5%) of the overall top ten trades of the year between them. Lloyds Banking Group retained its position at the top of both the buys and sells tables, accounting for over a fifth of this year's top ten trades in both, while Barclays remained in the top three.
"Meanwhile, RBS' position in second place in the buys table was supplanted by BP, as a government commissioned panel began to explore the best structure for the banking sector and the year ends with rumours of a possible separation between banks' retail and investment banking operations."