20th September 2007

Despite the banking markets crisis and the collapse of Northern Rock’s share price, new research commissioned by Brewin Dolphin¹ shows that over four in ten (42%) investors are confident that the stock market will perform well over the next three months and 11% plan to increase the value of their stock market-linked investments compared to only 4% who intend to reduce them.

However, over three quarters of investors (79%) believe that the current problems in the credit markets will lead to an economic slowdown in the UK, according to Brewin Dolphin’s inaugural Investor Sentiment Index.

The survey shows that the majority (55%) of investors believe that volatility in the stock market presents buying opportunities, yet the findings suggest that a far smaller percentage would be willing to put this to the test.

Reflecting a ‘flight to safety’ that often occurs during periods of market uncertainty, just over one in ten (11%) of investors have already or plan to move their investments into safer sectors. However, the vast majority (88%) have no plans to alter their investments at present.

Regionally, investors in the South East are most bullish with 43% believing the stock market will perform well over the next three months The South East, together with The Midlands also have the highest percentage of investors who will be increasing their exposure to the stock market with 15% in each region. Investors in Wales and the South West are the least confident about the stock market, with 71% believing it will not perform well and only 2% extending their exposure.

Charlotte Black, Director of Corporate Affairs, Brewin Dolphin said, "Our Investor Sentiment Index shows that despite most investors fearing that problems in the credit markets will lead to an economic slowdown, attitudes towards the stock market - at least over the short term - remain largely positive. Indeed, valuations in equity markets are tempting with the FTSE 100 currently selling on a 12 months forward p/e ratio of 11.5 times. Most investors rightly recognise that turmoil for some means opportunities for others and many should benefit when markets begin to steady. An important lesson from the last few days is that investors should always approach the market with an experienced partner."

Mike Lenhoff, Chief Strategist and Head of Research at Brewin Dolphin said, "Buying opportunities seldom look like buying opportunities until well after the event. Importantly, though, our long standing year-end targets for the S&P 500 and the FTSE 100 of 1525 and 6550 respectively, stand a good chance of being met if not exceeded! However, cash is king in times of uncertainty but, for some that seems to depend on where it is and if you insist on something that’s safe and you can trust, short dated gilts are king - at least for the moment."

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For further information:

Patrick Evans / Alistair Kellie
Citigate Dewe Rogerson
020 7638 9571

Notes to editors

¹ 1005 adults were interviewed by research company ICM by telephone. Fieldwork was conducted between 13th and 16th September 2007.

About Brewin Dolphin Securities

Brewin Dolphin Securities Limited ("BDS") is the principal operating company of Brewin Dolphin Holdings PLC which is listed on the London Stock Exchange. BDS is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange.

BDS is the largest independent private client portfolio manager in the UK. The Group manages £21 billion of funds on behalf of more than 100,000 clients, and of this £10 billion is on a discretionary basis. BDS has 38 offices and is corporate adviser to 140 small and medium sized quoted companies. Brewin Dolphin Investment Banking was voted AIM Broker of the Year 2007.

The Group provides complete investment management for private investors, charities and pension funds and trades as:

Brewin Dolphin in England, Wales and the Channel Islands
Bell Lawrie in Scotland and Northern Ireland
Hill Osborne in the East Midlands
Wise Speke in the North of England
Stocktrade is the BDS Execution-Only division. www.stocktrade.co.uk

Please see Media Centre section on www.brewindolphin.co.uk for details and photos of all commentators and analysts throughout the BDS Group.