Buys Surge As Big Banks Ponder PPI Payouts

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Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: “TD customer buys almost trebled this week as investors enjoyed their first full week of trading since breaking for a series of bank holidays. Financial stocks accounted for 55% of our top ten customer buys as Britain’s major banks abandoned legal challenges surrounding compensation payments over the mis-selling of payment protection insurance (PPI) on Monday (4 May); the Financial Services Authority later calling for customer pay-outs to be sped up.”

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Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: “TD customer buys almost trebled this week as investors enjoyed their first full week of trading since breaking for a series of bank holidays. Financial stocks accounted for 55% of our top ten customer buys as Britain’s major banks abandoned legal challenges surrounding compensation payments over the mis-selling of payment protection insurance (PPI) on Monday (4 May); the Financial Services Authority later calling for customer pay-outs to be sped up.”

Darren Hepworth continues: “We saw heavy trading in Lloyds Banking Group this week - the lender accounting for a third of the top ten buys - re-establishing itself at the summit of the table and rising one place to third in the sells. The banking giant announced a quarterly loss of £3.47bn on Thursday (5 May) after it set aside £3.2bn for compensation payments over the mis-selling of PPI.

“Notable newcomer to the buys, HBSC Holdings, entered the table in fifth place after reporting a 14% drop in first quarter profits on Monday (9 May) having also earmarked £269m to cover PPI compensation. Royal Bank of Scotland Group re-appeared in the top ten buys in seventh place and climbed four places to second in the sells, having announced its own £850m PPI provision on the same day. This is in addition to the £100m it has already paid PPI customers so far. Barclays dropped to third from first in the buys, its PPI provision totaling £1bn.

“While TD customer buys were dominated by financials, oil stocks accounted for over 65% of the top ten sells. Xcite Energy’s share price took a hit after an independent report into the commercial value of the oil explorer’s Bentley field disappointed analysts. The company’s share price tumbled from its opening price of 322.2p on Tuesday (10 May) to a low of 182p, before recovering slightly to 199.5p by the end of the day.

“Victoria Oil & Gas entered both the buys and sells tables in eighth and fourth places respectively. The AIM-listed oil and gas company gained approval from the Cameroonian government for an exploitation licence to start gas production on the outskirts of Douala in the west African nation.

“Finally, Pace took a pasting Tuesday (10 May) as the set-top box maker issued a shock profit warning, stating that the Japanese Tsunami had hit its supply chains. The company entered the top ten buys at number six, its share price closing at 97.25p (Tuesday, 10 May) having closed at 153.26p the previous day.”

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TD Waterhouse is the UK’s leading execution only broker2 with trading rates starting from £8.95. Only 15 or more eligible trades per quarter are required to qualify for TD Waterhouse’s frequent trader rates3.

For more information customers can log on to http://www.tdwaterhouse.co.uk

About TD Waterhouse:
TD Waterhouse is the UK’s leading execution-only broker†, servicing approx 200,000 UK customers with over £3.77 billion in customer assets (stocks and cash) under management. It is a subsidiary of the TD Bank Group (TD or the bank), the 6th largest bank in North America by branches. TD has 81,000 employees in offices around the world, serving 19 million customers with client assets of CDN$616 billion (as at 31, January 2011). † Source: Compeer based on daily average retail trades for TD Waterhouse including its white label partners, as at March 2011.

TD Waterhouse provides UK investors with simple, fast and easy share dealing services - combined with high quality news and information from leading providers including AFX and Morningstar (Hemscott) - to both active traders and longer-term investors. These include UK and international equity trading, Individual Savings Accounts (ISA s), Regular investment accounts and Self Invested Personal Pensions (SIPP s). TD Waterhouse is authorised and regulated by the Financial Services Authority (FSA), 25 The North Colonnade, Canary Wharf, London E14 5HS (FSA registered number 141282), member of the London Stock Exchange and the PLUS market.

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James Marlowe
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