Private Client Sharedealing Down But Not Out

6.11.2001

Private investor activity slowed to some 40,000 trades per day in August but has since increased to around 50,000, according to ComPeer’s quarterly survey of private client activity.

The report on private investor activity for the third quarter of 2001 (July to September inclusive) shows that investment in shares was slowing down prior to the September 11th attacks on the US but has since increased. And although trading in UK companies’ shares has reduced, investment in bonds and overseas equities has increased.

APCIMS Chief Executive Angela Knight said:

"Volumes are well down from their boom time peaks with August being the lowest month. This demonstrates that concerns over company performance and the economy generally were there before the events of September 11th. Daily trading volumes have increased since then, but hesitancy not surprisingly remains.

"However, stockbrokers don’t just buy and sell shares for their clients - they are also involved in bonds, unit trusts, ISAs, SIPPs and many other products. Prudent spreading of risk is clearly taking place with both the advice-based and dealing-only business."

Key findings of the survey are:

• the APCIMS/ComPeer quarterly index of private client activity fell to 216 from 258 in Q2. The index stood at 293 in Q3 2000;

• trading in overseas equities, gilts and bonds accounted for more than one-fifth of private investors’ trading activity for the first time in three years; online trading volumes fell 21 per cent from Q2; online trades now account for 20 per cent of execution only trades; and

• the number of online clients continues to rise - from 319,000 in Q2 to 327,000in Q3. The average online investor traded 1.5 times during the quarter.

Notes to editors

1. APCIMS represents the overwhelming majority of private client stockbrokers and investment managers in the UK, and through them the more than 12 million individual shareholders in the UK.

2. The APCIMS/ComPeer Private Client Activity Index charts the numbers of bargains conducted for the private client every quarter. Media copies of ComPeer’s quarterly report are available from Richard Bethell at ComPeer on 01293 822366.
   

For further information call:

Kevin Sloane, Head of Information, APCIMS (office 020 7247 7080; mobile 07917 406939; email kevins@apcims.co.uk)