Investors traded oil more than any other stock in 2010 at TD Waterhouse, the share dealing provider has revealed, as it reviews its most traded stocks of the year.
Oil was the most popular stock, helping to drive the FTSE back up, and it looks set to carry its popularity into 2011 according to Darren Hepworth, trading and customer services director at TD Waterhouse.
"As 2010 draws to a close it is clear from our annual top ten that TD Waterhouse customers have chosen to focus on banking and resources stocks which have concurrently helped the FTSE draw ever closer to the elusive 6,000 mark," Mr Hepworth said.
The FTSE is creeping closer to the level it was at before the credit crisis broke in 2008, driven by a rise in trader confidence, as shown in the annual TD Waterhouse Investor Confidence Index.
Commenting on the popularity of oil among investors this year, Mr Hepworth puts its success down to BP, which moved from eighth place of the top 10 buys table in 2009 to second place this year, helping oil to take the top spot, despite some failures in the sector.
Mr Hepworth explained: "Oil explorers have had an interesting year with the promise of Falklands' finds helping boost smaller AIM stocks Desire Petroleum (DES) and Rockhopper Exploration (RKH) which have entered our Annual Top Ten table for the first time.
"Desire shares piqued investor interest on the back of drilling in its Rachel North well, which proved to contain mainly water. This failure did not dent Desire or Rockhopper's ambitions in the area though as they announced ambitious drilling plans for 2011."
After halving in price to hit a 14 year low in June, following the Deepwater Horizon rig explosion, BP shares accounted for more than 17 per cent of the top 10 stocks bought by TD Waterhouse share dealing customers in 2010.
The TD Waterhouse Investor Confidence Index suggests that investors will continue to put their money on BP next year, with investors choosing it as their top pick if they had a spare £5,000 to invest in a single stock.
© Fair Investment Company Ltd
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