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Buys surge as investors eye discounted shares

Buys surge as investors eye discounted shares

Category: Investments

Updated: 04/02/2011
First Published: 04/02/2011

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 It is now over 6 months old so the content may be out of date.

Shares of energy and mining stocks accounted for almost seven in ten (69%) of buys in the week to Tuesday 1 February.

Research by share broker TD Waterhouse shows that some traders may have looked to shed risk from their portfolios against the backdrop of mounting unrest in Egypt.

With the FTSE 100 also falling at the beginning of this week, many investors rushed to snap up discounted stocks

Perhaps unsurprisingly, given the unfolding social and political turmoil in Egypt, mining company Centamin Egypt appeared in both the top ten buys and sells tables this week, taking fifth and second places respectively.

The firm moved quickly to help calm investor fears surrounding Egypt-focussed stocks, saying its day-to-day operations had so far been unaffected by the protests.

Just yesterday, the company was labelled as a 'stock to watch' by Interactive Investor.

Meanwhile, BP accounted for almost 15% of all top ten buys in the week, after the firm's share price dipped following its first full-year lost in nearly two decades.

The only stock to attract more interest was Lloyds Banking Group, with the number of buys doubling on last week's figures.

National Grid entered the buys table in third this week after announcing it is restructuring its US business. The company believes it will save £125 million a year in the process, but will have to shed 1,200 jobs.

"Customer buys more than doubled in the week ending February 1, as political turbulence in the Middle East continued to affect financial markets," said Darren Hepworth, trading and customer service director at TD Waterhouse.

"The FTSE 100 closed down at 5,816.88 on January 31 recovering to 5957.82, at close on February 1. Some analysts report that retail traders may have been looking to shed risk from their portfolio by offloading their mining stocks.

"Equally, savvy investors may have been seeking to capitalise on discounted shares with energy and mining stocks making up 69% of the top ten buys."

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