Investor activity in the stock market has reached an all-time high in 2007, it has emerged.

Research taken from the 2007 Investor Confidence Index from TD Waterhouse has revealed stock market activity among 90 per cent of investors owning shares.

Investors are most encouraged by the potential of the drugs and healthcare sector in the next few months, whereas property was seen as the top performer in 2006, the study found.

Almost half (48 per cent) have invested in individual savings accounts (Isas) held in stocks and shares this year, while 57 per cent see their investment strategy as part of a long-term retirement plan, the TD Waterhouse report revealed.

Recent market volatility following the Northern Rock crisis and the emerging global credit crunch have affected the confidence of UK investors, however, with 33 per cent confident in the market compared to 50 per cent in 2006.

“Overall the message is clear – more UK investors than ever are trading in stocks and shares, even if confidence has been slightly dented by recent market jitters,” commented Angus Rigby, chief executive officer of TD Waterhouse.

Recent problems in the banking sector have led investors to fear that the UK’s financial system is moving into new credit turmoil that could affect the real economy, reports the Financial Times.

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