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Lloyds and RBS shares remain top buys for investors while Barclays drops

01 June 2009 / by Rebecca Sargent
Last week saw the return of the retail investor through Interactive Investor, as Yell pushed Barclays out of the top three bought shares.

Both Lloyds and RBS managed to hold on to their 'most bought' titles, while Yell managed to surpass each of Barclays, Lloyds and RBS to become the top sold share of last week.

Commenting, Rebecca O'Keafe, head of investment at Interactive Investor said: "The lowest market volatility in a long time resulted in a surprise change in this week's retail investor trading stats.

"As daily retail volumes fell by 40 per cent compared with early May, Yell displaced banks a the most sold stock over the week, following on from the directories business' results last week.

"Banks did not experience the wild price fluctuations seen in previous weeks," she added.

Meanwhile, the online stockbroker and fund supermarket found that fund volumes saw a significant increase as low volatility prevailed: "Over the last nine months, most market participants have been short-term traders with short term objectives – often adopting a five hour investment horizon rather than the five years that we experienced before the recession.

"However, the increase in fund volumes could finally be a sign that we are beginning to see a return of the long term investor to the market. This trend is likely to continue if volatility remains low," Ms O'Keafe added.

Events that could impact the markets this week include the latest interest rate decision and quantitative easing announcement from the Bank of England, in addition to the Lloyds AGM this Friday.

Most telling, according to Ms O'Keafe, will be the quantitative easing announcement; "US yields have risen over 60bps in the last two to three weeks – with 30 year yields rising to their highest levels since last October.

"The effects of their quantitative easing policy are starting to unravel and the big question for UK investors is how long it will take for the same thing to happen here," she concluded.

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