BSkyB enters TD top ten buys amid hacking scandal fallout
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "Buys among TD customers soared in the week ending Tuesday 12 July increasing by over 40% on last week and outnumbering sell trades by nearly 2:1. The biggest news story of the week centred on the continuing furore surrounding the News of the World phone hacking scandal, so it was no surprise that British Sky Broadcasting (BSY) entered the top ten buys table. Its share price was hit by uncertainty over News Corporation's £8bn takeover bid for the broadcaster, which was subsequently withdrawn yesterday. Meanwhile the FTSE 100 dipped back below the 6,000 mark as concern over the eurozone debt crisis switched focus to Europe's third largest economy, Italy.
"BSkyB entered our customers' top ten buys in sixth position this week as politicians put on a united front in calling for Rupert Murdoch's News Corporation to withdraw its £8bn bid for the broadcaster - which the media tycoon was ultimately forced to do. The bid was referred to the Competition Commission on Monday (11 July) and as a result, BSkyB's share price dropped, hitting a low of 687.50p on Tuesday (12 July), having closed the previous week at 811.75p.
"Elsewhere, the eurozone debt crisis rumbled on with Chancellor of the Exchequer, George Osborne, stating that the UK is not immune to the recent economic turmoil , calling on European finance chiefs to come up with a plan to solve the crisis. Financial stocks remained popular with our customers however, with Barclays (BARC) rising to first place in the buys table. It leapfrogged both Lloyds Banking Group (LLOY), which fell from second to third and Royal Bank of Scotland Group (RBS), which moved to fourth place having been the third most popular customer buy last week.
"Thomas Cook Group (TCG) was a notable new entrant to the top ten buys, checking in at eighth place as its share price plunged below 87p having closed the previous day at nearly 122p. The slump came after the travel giant cut its full year profit forecast on Tuesday (12 July), which it put down to unrest in North Africa and a squeeze on consumer spending at home.
"Last week's top buy, Xcite Energy (XEL) dropped one place to second in this week's table, but moved from second to first in the sells, accounting for over 20% of all top ten sell trades. Second place Yell Group (YELL) was a new entrant as TD customers appeared to take the opportunity to cash in on the company's increased share price. The stock was boosted following an announcement on Tuesday (12 July) that it has formed a global strategic alliance with Microsoft with a view to helping expand its online operations."