'Surge in online share dealing'

SHARE dealing on the internet rose at the end of last year as investors made the most of stock market falls, latest figures show. The volume of trades in the final three months jumped 34% on the preceding three months, according to market analysts ComPeer.

Buyers outstripped sellers - the first time since 2000 - as investors looked to get back into the market and made the most of lower share prices caused by market volatility.

The research, based on individual investors buying shares over the counter in banks, and by telephone and internet, also found that the number of people trading online increased to 346,000 from 327,000 during the three months. Nearly 32% of all execution-only share trades were now over the internet.

But the value of online trades is still below those executed by 'phone, averaging £3,835 compared to £5,603 for telephone trades.

Angela Knight, chief executive of the Association of Private Client Investment Managers and Stockbrokers, said: 'Online investors evidently did some bargain hunting long before the January sales. In spite of a stagnant market, they sought out some buying opportunities, so they are clearly keen to get back into the market. Overall activity has now returned to 1999 levels.'

ComPeer's index, which tracks private investors' activity, rose to 218 during the three months from 216 the previous quarter. That ended a downward trend which began in the second quarter of 2000 when the index peaked at more than 450.

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