Europe's directors are wary too

published 22 May 2009

We noted recently that US corporate insiders were selling out of stocks in droves. Now it seems that their European counterparts, while not heading for the exits, either.

Deutsche Bank says pan-European directors' buying fell to a two-year low in the 50 days to 12 May, suggesting that those with "the best information have preferred to sit on their hands".

In Britain, the average ratio of directors' purchases to sales is 3 to 1; since the beginning of the year, it has averaged just 2.6 to 1, says Bryce Elder in the FT. Before the market troughed in 2003, it was 12 to 1.