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TD Waterhouse trading dominated by banks as shares rise on back of $1.1trillion G20 stimulus

03 April 2009 / by Rachael Stiles
TD Waterhouse share dealing was dominated by investors trading bank shares yesterday, as prices surged following the announcement of a $1.1trillion stimulus package agreed by the G20.

Ahead of the G20 summit yesterday morning, European markets rallied by more than three per cent, with the FTSE 100 breaking through the significant 4,000 points barrier, and shares have since soared after the world leaders agreed on the plan to inject cash into the global economy.

Joshua Raymond, market strategist at City Index, said that the increase in share prices "has spurred optimism for a longer term rally with investors buying all sectors."

Speaking yesterday, he said: "From the market lows on Tuesday morning the European markets have now rallied as much as 8%. This is indicative of how volatile the markets are and how quickly trading appetite can change."

Financial services companies subsequently remained high on the agenda for investors as the G20 summit continued yesterday, TD Waterhouse found.

"As World leaders gather in London for the G20 Summit, it's hard to ignore the attention surrounding the banking crisis, which is apparent again this week as financial services companies continue to dominate our customer's trading activity," commented Angus Rigby, chief executive officer at TD Waterhouse share dealing.

The share dealing provider recorded slightly more buys than sells, "as customers may be looking to replenish their stock following last week's selling frenzy," Mr Rigby said.

Barclays share dealing held its position at the top of the tables for the third consecutive week, accounting for 34 per cent of buys and sells, with 38 per cent more investors buying Barclays shares compared to last week following the FSA's announcement that it will not need to take part in the Government's toxic assets insurance scheme.

City Index's Mr Raymond predicts that "Some commentators will inevitably start calling a bottom," now that the market is showing signs of life, but he warns against this. "Again, this is slightly premature as nothing has fundamentally changed in the last few weeks," he said.

Indeed, the FTSE was already showing signs of retreat after yesterday's euphoria, falling 6.3 point by mid-morning today. But, Mr Raymond added, "demand for equities is improving, signalling that the light at the end of the tunnel is getting closer."

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