The financial portal commissioned a series of surveys of private investors’ sentiment towards the banking shares shortly before and after the FSA announced the temporary ban on short-selling on September 18.
Before the ban, 34 per cent of private investors thought that the share price of bank shares had bottomed out and this rose to 41 per cent, four days after.
The percentage of private investors who said they did not know whether the share prices of banks had reached the bottom or had further to fall increased marginally from 20 per cent before the ban to 21 per cent after the ban was imposed.
DigitalLook.com director Andy Yates says: “The FSA’s ban on short-selling has improved private investors’ confidence slightly. However, the improvement in sentiment in not as dramatic as the Government might have wanted and could prove to be fragile.
“Perhaps it is time that the UK Government started to differentiate a little less between those people who are willing to lend money to the banks and those that are willing to invest in the banks.”