Small investors lured back to shares

PRIVATE investors' confidence in the stock market is increasing, with nearly two-thirds planning to put more money into shares, latest research claims.

Around 67% of people who trade shares said they were confident their investment would increase in value, while 60% said they planned to invest more during the coming six months, according to Barclays Stockbrokers.

The figures are far more positive than when the same research was carried out last year, when only 38% of people expected their holdings to increase in value and just 46% planned to continue putting money into equities.

At the same time the number of people who were not confident that their portfolio would increase in value has fallen from 39% in 2002 to 12% now.

'As market moves are largely sentiment-led, this bodes well for the market and the UK brokerage industry,' said Hans Georgeson, of Barclays Stockbrokers. 'Dealing volumes in the execution-only business are up 50% from market lows back in March.'

PricewaterhouseCoopers' questioned 600 Barclays clients during July.