UK private investors sell off commodities

British private investors have chosen to call time on commodities, in spite of continuing record prices within the sector, writes Elaine Moore.

Research from Capita, the share registrars, shows the sale of natural resource stocks generated the largest amount of activity by private investors in any sector over the past 18 months.

Resource stocks have risen in value by £162bn ($320bn, €201bn) during that time, and now account for over one third of the FTSE 100. In April and May, prices for metal, energy and agricultural stocks rose collectively by 19 per cent.

Private shareholders have responded by cutting their position by £1.2bn, selling almost all of the £1.4bn shares they have purchased since August 2007.

John Roundhill, director of Capita Registrars, said that in commodities private investors may well have identified a bubble that is about to burst: the sell-off exceeds that of financial stocks. "Having called the financial sector so well, it seems private investors are better at judging the markets than they are often given credit for," Mr Roundhill said.

http://www.ft.com/cms/s/0/fa759ab2-3f29-11dd-8fd9-0000779fd2ac.html

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UK private investors sell off commodities