NORTH-EAST investors looking for positive signs in the UK's stock market will be cheered by statistics showing that company directors are buying an increasing number of shares in their own and other companies.

The figures show the ratio between the amounts of shares being bought and sold by directors in one month.

The latest report, published by Merrill Lynch, shows that this ratio went up to 9:1 in the past month, compared with the previous month's ratio of 4:1 and the long-term average ratio of 5:1.

William Baker Baker, head of the Teesside operations of Wise Speke, a North-East stockbroking and financial services firm, and a division of Brewin Dolphin Securities Ltd, said the figure could be a factor to consider when looking at market conditions.

He said: "UK directors have a good record of knowing when to buy and when to sell, and if they are becoming more confident about the investment prospects of their own and other companies, it could be a good sign for the market as a whole.

"One swallow definitely doesn't make a summer, especially in the current difficult climate, but indicators such as this can be helpful."

"It is almost impossible to call the bottom of the market, and we are all looking for small signs that could help identify when the recent market uncertainty might be resolved.

These confidence statistics are worth watching.