Investors eye up BSkyB after hacking fall-out - Investments - News - Moneyfacts

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Investors eye up BSkyB after hacking fall-out

Investors eye up BSkyB after hacking fall-out

Category: Investments

Updated: 15/07/2011
First Published: 15/07/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Investors looked to take advantage of a fall in the share price of BSkyB against the backdrop of the hacking scandal this week.

The value of stocks in the media giant was hit by uncertainty over News Corporation's £8 billion takeover of the broadcaster, a move that was subsequently withdrawn yesterday after agreement from all parties that the bid should be pulled.

The fall-out was a direct result of the hacking scandal that saw the News of the World – which was also part of News Corporation – closed last week.

Shares in BSkyB fell to a low of 687.50p on Tuesday 12 July, and figures from TD Waterhouse show that investors seized the opportunity to buy, making it the sixth most purchased share in the week.

Buys in the company helped boost activity in a week which saw equity purchases increase by more than 40% on the previous week.

Away from the hacking saga, Barclays was the most purchased stock in the week to Tuesday 12 July.

"Financial stocks remained popular with our customers, with Barclays rising to first place in the buys table," commented Darren Hepworth, trading and customer services director at the broker.

The bank leapfrogged both Lloyds Banking Group, which fell from second to third place and Royal Bank of Scotland Group which moved to fourth place having been the third most popular customer buy last week.

Aviva and Thomas Cook Group were also new entrants to the top ten buys.

"Thomas Cook Group 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," said Mr Hepworth.

"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."

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