Retail investors have dumped oil, gas and mining stocks for banks over the past six months in the hope they will outperform after long-mooted regulation and privatisation.
A survey of small investor habits from stockbroker Interactive Investor found the most popular traded stock was Barclays for the January to June period. Next came part-taxpayer owned Lloyds Banking Group while Royal Bank of Scotland was fifth.
Mike McCudden, head of derivatives at Interactive Investor, said: “There are a lot of the usual household names in this list, but compare it against what clients traded over the same period last year and there are some marked differences. The less obvious energy stocks have certainly dipped in popularity – Range Resources was 4th most popular for the first half of 2012 whilst Gulf Keystone has tumbled from 1st place to 5th. Red Emperor has similarly fallen out of the top 10 altogether.”
With long awaited changes in the banking sector starting to be initiated by regulators the performance of the banking sector has been closely watched.
Mr McCudden added: "There has certainly been less news surrounding resource companies in recent months and with oil prices coming off record highs this will also be detracting from their recent popularity.
"It will be interesting to see if appetite for risk takes off again in the second half of the year as stimulus measures are withdrawn and markets risk falling back.”
