Investors are taking advantage of the slumping stock prices of the UK’s leading banks, finds TD Waterhouse.

Almost 80 per cent of trading activity has been focused on the distressed banking sector over the past week, with Royal Bank of Scotland topping the table, accounting for 32 per cent of buys and a quarter of sales.

With shares in RBS down 61.5 per cent since last Monday and Lloyds TSB and HBOS shares down 34.8 per cent and 38.1 per cent respectively, TD Waterhouse customers took the initiative to buy up stock at a lower price. As a result, this week’s trading figures revealed a 22 per cent rise in overall trading, with the top ten buy trades up 28 per cent and sales up eight per cent.

Angus Rigby, chief executive officer at TD Waterhouse, says, ‘Following the news that the government was forking out £39 billion to help three of the biggest banks, it is not surprising that banking stock is still the most popular choice with our customers. RBS’s slumping share price made it an attractive option for our buyers as buy trades for RBS outnumbered sales by almost a third. Meanwhile, Lloyds TSB and HBOS have dropped on our trading tables as shareholders became dubious as to the short-term benefits of the HBOS buy-out.’

Away from the banking sector, there has been renewed interest in Woolworths following Alan Sugar’s unexpected acquisition of a near four per cent stake in the struggling company last week.

‘Our customers were quick to grab a bargain as shares in the retailer jumped 29 per cent following the announcement,' added Rigby. 'Its entry in the top buys this week is a sign of better prospects for the company after it lost 70 per cent of its market value this year.’

The host of BBC's The Apprentice, who acquired almost 57 million shares in the retailer valued at around £2.5 million, said that he saw potential in Woolworths’ property assets, which amount to 817 stores in the UK.