New figures have been published showing that sells were 15 per cent ahead of buys last week, with banks accounting for many of the most-traded stocks.

New figures have been published showing that sells were 15 per cent ahead of buys last week, with banks accounting for many of the most-traded stocks.

Angus Rigby, chief executive at TD Waterhouse, reported that Royal Bank of Scotland was the second-most-popular trade this week due to speculation about possible plans to buy back some of its £28 billion debt.

He said: "The banking giant is expected to say that it hopes a vast restructuring of its balance sheets will boost its capital strength, as well as its relationship with bond investors."

The recent rally in banking stocks has even seen HSBC re-enter the top ten buys this week, he claimed, which is one of the organisation's rare appearances in this list.

Hedge funds are likely to find the UK equity market trickier this year than it was in 2009, equity strategist at Legal & General Investment Georgina Taylor has claimed.

She said that the worsening conditions are responsible, suggesting that the key way to generate high returns will be through stock selection.