The wild ride on the stock markets over recent days hasn't put some hardy investors off - as bank share deals are on the up.
The recent volatility in financial stocks could represent a good buying opportunity for brave investors, The Share Centre has suggested.
According to data from the firm, there has been a 316 percent rise in people opening new accounts - with many seeing the chance to buy up blue-chip stocks cheaply. Deals went up 113 percent last week, with bank shares accounting for 40 percent of this total.
Extreme volatility was experienced on the FTSE 100, on which most large UK banks are listed, last week. The index dropped a total of 559 points over the five days, due in part to Lehman Brothers' bankruptcy declaration and the government-backed takeover of HBOS by Lloyds TSB.
It is the latter deal which has particularly excited investors - with the purchase of stock in the bank making up 44 percent of all banking share deals.
Graham Spooner, investment adviser at The Share Centre, said: "We hope that once the markets settle the merger will create a powerful entity on the high street and offer some long-term value for investors. However, considering the current climate we would advise first time investors to tread carefully and ask them to consider their attitude to risk and time horizons before investing."
He added: "It is a good idea for investors to review their portfolio regularly and set 'stop loss limits' in order to minimise losses. Likewise investors should be strict when it comes to setting limits and target prices."
