Banks stocks attract heavy trading in 2009

Bank stocks have dominated a top ten list of most traded shares this year compiled by TD Waterhouse, the broker.

Royal Bank of Scotland, Barclays and Lloyds Banking Group are the most traded stocks of 2009, with these three banks alone accounting for two-thirds of the top ten buys and sells at TD Waterhouse.

Lloyds was the most popular buy and sell following its merger with HBOS in January this year.

The figures highlight the overall volatility that has hit the banking sector this year as investors moved in and out of bank stocks in the hope of profiting from the recent market rally.

Angus Rigby, chief executive officer of TD Waterhouse said: “While fluctuating bank stocks have certainly been a risky investment this year, they will have still proved profitable to those investors who timed their trades well.”

But he added that while there appeared to be a constant appetite for bank stocks, investors remained sceptical of the industry’s long-term credibility.

“As we enter into the next decade the banks have their work cut out to improve customer, if not investor sentiment next year,” he said.

This year, buying activity has also remained strong, with the top ten buys ahead of sells by 17 per cent, an indication that investor appetite continues to rise.

Last year’s top sells have now become this year’s top buys. British Petroleum has moved from its position as the eighth most popular sell in 2008 to the eighth most popular buy in 2009.

Xstrata, Taylor Wimpey, Aviva and Gulf Keystone are also among the top-ten buys and sells of 2009.