4 July 2008: Investors seek value in falling market conditions

This week saw the FTSE sliding the furthest since the Bear Stearns debacle in March, yet despite this many investors are using it as an opportunity to take advantage of market conditions.  Investor optimism was revealed as almost six in ten orders executed by Barclays Stockbrokers clients on Tuesday 1 July were buys – at 58% compared to 42% sells and the trend continued on Wednesday, with 54% buys (compared to 46% sells). Thursday showed the buy:sell ratio shift to 47% buys, yet on average the past three days (1st – 3rd July) saw trades dominated by positive buying moves – 53% buys on average.

Henk Potts, Equity Strategist, Barclays Stockbrokers said: “Rising inflation, sky-high oil prices, falling house prices along with weak consumer and business confidence surveys are all conspiring to reduce economic growth prospects and push markets lower.

“However, against a backdrop of cheap valuations we still believe long term investors will benefit from exposure to shares. Therefore its good see that a significant majority of our self directed investors are seeing the current short term volatility as an opportunity.”

Barclays Stockbrokers buy / sell ratios:

• 1st July 2008:
  Buys: 57.5%
  Sells: 42.5%
• 2nd July 2008:
  Buys: 54%
  Sells: 46%
• 3rd July 2008:
  Buys: 47%
  Sells: 53% 

For further information contact:

Caroline Wells / Nicola Hankey
PR, Barclays Wealth
020 7114 7435 / 020 7114 9813

OR

Katie Hayward / Katherine Hobby
Lansons Communications
020 7294 3631 / 020 7566 9704
katieh@lansons.com / katherineh@lansons.com