Online investors coming back to the market

5.2.2002

Online investors ended 2001 with a surge in activity which saw their “buy” trades outnumber their "sells", according to ComPeer's quarterly survey of private client activity.

Not only did online share trading volumes increase 34 per cent, but also the ratio of share sales to purchases (the sold/bought ratio) revealed execution only clients as net buyers of shares for the first time since 2000.

The ComPeer report on private investor activity for the final quarter of 2001 (October to December inclusive) also reveals:

• the APCIMS/ComPeer quarterly index of private client activity rose from 216 in Q3 to 218 in Q4;

• online trading volumes rose 34 per cent from Q3; online trades now account for 31.5 per cent of execution only share trading; and

• the number of online clients continues to rise - from 327,000 in Q3 to 346,000 in Q4. The average online trade size was £3,835, compared to £5,603 for telephone trades.

Welcoming the figures, APCIMS Chief Executive Angela Knight said:

"Online investors evidently did some bargain hunting long before the January sales. In spite of a stagnant market, they sought out some buying opportunities, so they are clearly keen to get back into the market.

"Overall activity has now returned to 1999 levels. Advice-based services have been net sellers of shares for 18 months now, but this trend may yet reverse in 2002."

Notes to editors

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.

The APCIMS/ComPeer Private Client Activity Index charts the numbers of bargains conducted for the private client every quarter.

For further information call:

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