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Market sentiment impacts on private investors
1 August 2002
Falling markets discouraged private investors from trading in the
second quarter of the year and the trend looks set to continue according
to the latest ComPeer survey of investor activity.
The expected seasonal slowdown in share trading has been exacerbated
by the sluggish market to reduce trading volumes by 9.55 per cent
over the last quarter. Whether investors were using professional
advice or researching stocks for themselves, they were predominantly
selling rather than buying, shows the ComPeer report on private
investor activity for the second quarter of 2002 (April to June
2002).
Key figures include:
- the APCIMS/ComPeer quarterly index of private client activity
fell from 223 in Q1 2002 to 204 in Q2. Daily trading volumes ranged
between 40,000 and 50,000 trades;
- overall trading volumes fell by 9.55 per cent; and
- the number of online clients continued to rise, albeit slightly
- from 370,000 in Q1 2002 to 374,000 in Q2. The average online
trade size also rose, by £334 to £4,024, compared
to £5,237 for telephone trades.
APCIMS Chief Executive Angela Knight said:
"Private investors have followed the old City adage: 'Sell
in May and go away.' Until sense and order return to the markets,
we will not expect private investors to be buying again in significant
numbers."
Notes to editors
- APCIMS, the Association of Private Client Investment Managers
and Stockbrokers, 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.
In April this year it merged with the European Association of
Securities Dealers (EASD), to develop a pan-European forum to
address the concerns of investment firms.
- ComPeer was launched
in May 1993 to provide competitor benchmarking services. Its reputation
has been formed by the widely acclaimed Survey of Private Client
Stockbroking and Fund Management which now has 84 participants.
- The APCIMS/ComPeer Private Client Activity Index charts the
numbers of bargains conducted for the private client every quarter.
For further information call
Kevin Sloane, Head of Information, APCIMS (office 020 7247 7080;
mobile 07917 406939; email kevins@apcims.co.uk)
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