More active investors in UK markets

More investors are putting cash into the stock market, but recent market jitters are hitting confidence.

The 2007 Investor Confidence Index from online broker TD Waterhouse shows 90 per cent of active investors now own shares, but only a third are more confident than a year ago.

Some 81 per cent of British investors are putting their cash into UK companies, 34 per cent into unit trusts, 32 per cent in international companies and 19 per cent in bonds.

Property has seen the greatest fall in confidence – with 25 per cent expecting the sector to be a top performer down from 49 per cent in 2006.

Drugs and healthcare is expected to be the top performing sector.

"Overall the message is clear – more British investors than ever are trading in stocks and shares, even if confidence has been slightly dented by recent market jitters, and for the first time property was not seen as the top performing sector," said Angus Rigby, chief executive of TD Waterhouse UK.

The research also shows 68 per cent of investors were satisfied with their portfolios, while ten per cent were dissatisfied.

Some 48 per cent had invested stocks and shares in ISAs – up seven per cent – and 57 per cent were investing as part of a long-term retirement plan.

When asked what they would invest in tomorrow if given £5,000, 11 per cent of investors opted for Northern Rock, followed by Tesco (seven per cent), Royal Bank of Scotland (four per cent) and Marks & Spencer (three per cent).