Unsurprisingly, the shares of Northern Rock and Partygaming topped the list of most frequent buys and sells during the course of 2007, according to execution-only broker TD Waterhouse.

Angus Rigby, chief executive officer at TD Waterhouse, observes that ‘Partygaming, the world’s biggest listed online poker and gaming group, is incorporated in Gibraltar and exempt from UK Government stamp duty. It has been a firm favourite of TD Waterhouse retail investors since its high-profile flotation in 2005. Changing gambling regulations on both sides of the Atlantic have had an impact on the company and its share price, ensuring its popularity with TD Waterhouse investors.’

He adds, ‘Northern Rock vied for pole position with Partygaming as the most traded stock in 2007. As the frenzy around the troubled mortgage lender gained momentum in September we saw a month’s worth of new accounts opened in just a few days, helping propel the company to the top buy of 2007.’

Rigby points out that ‘More people have bought than sold in Northern Rock, and this can be attributed to the shares being bought in batches and sold in bulk. It does appear that some traders would rather hold onto their shares than cut their losses. Only time will tell if that’s the right thing to do.’

He reports, ‘Our research also found that more investors are pinning their hopes on the drugs and healthcare sector in the forthcoming months to deliver the best returns on investment. This is a marked change from last year as investor confidence is dented in the property market for the first time. When we couple this with the downturn in house prices and the possibility of more interest rates cuts, both forecast for 2008, this is a trend that could roll out further over the course of the year.’