Trading volumes remain low - but are investors buying again?

4 November 2002

Although share trading activity has continued to fall, investors with execution only and advisory stockbrokers are buying into the market again for the first time this year, according to the ComPeer quarterly survey published today.

The latest report on private investor activity shows execution-only and advisory clients bought shares more often than they sold during the third quarter of 2002. However fully discretionary portfolio managers remained net sellers in the market and overall trading levels remained low.

Key figures include:

the APCIMS/ComPeer quarterly index of private client activity fell from 206 in Q2 2002 to 176 in Q3 - the lowest level since Q4 1998;
private clients trading volumes fell by 14 per cent; and
online trading volumes stabilised at around 500,000 trades per quarter.

APCIMS Chief Executive Angela Knight said:

“These numbers indicate that investors are looking for bargains again. Not surprisingly trading volumes are still low but interest is clearly there.”

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)