Week of opportunity and profit-taking

ROYAL Bank of Scotland was a wanted company last week as investors bought its shares, seeing opportunities for gains as the ABN Amro saga rumbles on.

According to stockbroker TD Waterhouse, RBS's shares were among the most sought-after.

The consortium led by RBS looking to acquire ABN revised its offer and boosted the cash part of its deal after conceding it would not be able to stop the sale of LaSalle Bank.

As a result, the consortium has crept ahead once more in analysts' expectations of which suitor will emerge triumphant in the deal.

RBS's share price has been on the decline since the bidding war for ABN first began, but TD Waterhouse said investors recognised this as an opportunity to increase exposure to the bank.

Meanwhile, the dismal British summer weather dragged on for another week and thousands more Brits were left either homeless or with worries of becoming so, leaving consumer spending and the retail sector at large feeling the pinch.

One company that was hit hard was Sports Direct International, which released a profit warning on Tuesday for its year to the end of April 2008, blaming poor sales at the start of the year on dismal weather in May, June and July.

The shares have slumped 37 per cent since its flotation at 300p in February. However, TD Waterhouse said investors continued to see potential in the company and Sports Direct was one of the top buys last week.

Trading activity in the energy sector has been strong.

Oil and gas explorer Ascent Resources was sold strongly last week after hitting a high of 31p a share in recent weeks, with

investors happy to take profits after such a good run.