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Oil exciting New Year investors

Oil exciting New Year investors

Category: Investments

Updated: 07/01/2011
First Published: 07/01/2011

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 It is now over 6 months old so the content may be out of date.

Oil, mining and bank equities have proven popular with investors in the opening days of 2011, according to a leading investment broker.

With the FTSE 100 breaking through the 6,000 barrier on the first day of trading in 2011 and reaching highs not seen for 30 months in subsequent days, TD Waterhouse said oil, in particular, is catching the eye of investors.

The broker said oil stocks had provided over half of the total top ten buy and sell trades in the week to 4 January 2011, with Desire Petroleum the top buy and sell in that period.

Shares in Gulf Keystone Petroleum, Xcite Energy and BP also proved popular, keeping bank stocks just shy of the top spots.

The news comes after the majority of investors claimed to be bullish about the prospects of the FTSE 100 in the forthcoming year.

More than half of investors told Barclays Stockbrokers that they are expecting a rally in the FTSE in 2011.

Meanwhile, the Association of Investment Companies found that more than nine in ten fund managers are predicting that the markets will rise in the coming year.

Over three quarters of those questioned expect the FTSE 100 to end 2011 somewhere between 6,000 and 6,500.

Stocks and shares enjoyed something of a mixed time in 2010, although the FTSE 100 ended the year 9% higher than it had entered it, at 5,899.

"The recovery seems set to continue for the immediate future and fund managers are once again backing equities as the top performing asset, putting their faith in the emerging economies as the sector to watch and resources as the sector of choice," said Ian Overgage, acting communications director at the AIC.

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