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Investors turn their attention to banks

Investors turn their attention to banks

Category: Investments

Updated: 12/05/2011
First Published: 12/05/2011

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 It is now over 6 months old so the content may be out of date.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 have turned their attention to financial stocks over the past week, as investment activity surged following the series of bank holiday breaks.

TD Waterhouse revealed buying activity almost trebled as investors made the most of the first full week of trading since the middle of April.

Financial stocks enjoyed most of the focus, accounting for 55% of the top ten customer buys as the major high street banks decided against legally challenging the compensation payment ruling over the mis-selling of payment protection insurance (PPI).

Trading was particularly heavy in Lloyds Banking Group, with the bank accounting for a third of the top ten buys.

The banking giant was also the third most sold stock of the week, as it announced a quarterly loss of £3.47 billion after setting aside £3.2 billion for compensation payments over the mis-selling of PPI.

HBSC Holdings was the fifth most purchased stock during the week after reporting a 14% drop in first quarter profits and earmarking £269 million to cover PPI compensation.

Royal Bank of Scotland ranked seventh in terms of buys and second in respect of sells, having announced an £850 million PPI provision to add to the £100 million it has already paid.

Barclays dropped to third from first in the buys, with its PPI provision totalling £1 billion.

While buying activity centred on financials, oil stocks accounted for almost two thirds of the top ten sells.

Xcite Energy's was the most sold stock of the week as its share price took a hit after an independent report into the commercial value of the oil explorer's Bentley field disappointed analysts.

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