TD Waterhouse share dealing notices revived interest in pharmaceuticals

14 March 2009 / by Rachael Stiles
Shares in pharmaceuticals have made a comeback onto TD Waterhouse's share dealing top 10 this week, as investors look for a cure from the crunch.

The share dealing provider has suggested that the appearance of pharmaceutical group GLAXOSMITHKLINE (GSK) in its top 10 share buys this week might indicate a return to traditional safety nets for investors.

"Traditionally, pharmaceuticals are seen as robust and defensive stocks in a bear market, thanks to their relative resilience to capital market volatility," said TD Waterhouse CEO Angus Rigby.

"So, after many weeks of absence from our top ten tables, a renewed interest in GlaxoSmithKline (GSK) might indicate that TD Waterhouse customers have harked back to safer investment strategies."

Some market analysts are of the opinion that falling share prices have meant that risk aversion has become a staple ingredient of investing, Mr Rigby noted, which is urging investors to go back to what they know.

But, investors could have ulterior motives, he said, as "a closer look at recent activity in the pharmaceuticals industry suggests our customers might not just be looking for a cure to the market downturn, but a bargain too."

Barclays and Lloyds shares continue to dominate the top spots of the most popular buys, as Barclays shares have continued to tumble, despite the £7billion recapitalisation from its Middle Eastern investors last October.

But Barclays shares jumped 17 per cent on Tuesday, amid rumours that it might be joining Lloyds Banking Group in getting help from the Treasury's Asset Protection Scheme.

"As Barclays still has until the end of March to mull over whether to formally apply to join the UK asset protection scheme before the deadline expires, it is yet to be seen which way our customers will place their bets," Mr Rigby said.

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