TD customers chase commodities
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "TD customers may have been capitalising on strong commodity prices this week, as copper traded above $463 for the first time ever. Oil companies and miners led the charge, accounting for nearly 60% of the top ten customer buys, as the resources sector pushed the FTSE 100 back above the 6000 mark closing at 6091.33 on February 8 - its highest level since May 2008.
"Encore Oil (EO) entered both the top ten buys and sells tables in fourth and sixth place respectively this week. Increased trading activity around this stock came as the company announced its plans to quit its Catcher North well due to ‘unspectacular' results from its anticipated reserves.
"Better news greeted Range Resources (RRL), which makes a return at fifth in the buys and eighth in the sells. The oil company said the results of a helium survey had indicated an active oil and gas presence in two of its Republic of Georgia drill sites.
"Mining company Xstrata (XTA), which entered the sells table in seventh place, drew on stronger commodity prices after reporting full-year profits had outdone forecasts. The company remains upbeat about its prospects for 2011 despite the potential threat of flooding in Queensland, Australia affecting future revenues.
"Lloyds Banking Group (LLOY) was the only bank represented in the top ten buys, topping the table for the third week in a row. It also joined Barclays (BARC) and Royal Bank of Scotland (RBS) in making up nearly 50% of the top ten sells as the government increased the levy on banks to £2.5bn this year. Reports also emerged that bonus season would not become victims of a government crackdown.
"Elsewhere, drug-discovery specialist Sareum Holdings (SAR) entered the buys in second place and the sells in fifth after announcing positive results from pre-clinical studies into one of its Leukaemia compounds. Meanwhile in retail, customers may have been looking for a bargain as Tesco (TSCO) squeezed into the top ten buys at 10th place. The company's share price plunged 6.1p to 396p February 8 on news that Marks and Spencer (M&S) has nabbed Laura Wade-Gery, former chief executive of Tesco.com, to work on the M&S board as executive director of multichannel and e-commerce."