Aug. 09, 2023 at 9:52 am

Top 10 Most Bought And Sold Shares In April – Forbes Advisor UK

August 9, 2023no commentNo tags

Top 10 Most Bought And Sold Shares In July 2023

Investors continued to enjoy gains on both sides of the Atlantic in July, although it was a bumpier ride for UK stock markets, writes Jo Groves.

The rebound in US stock markets showed no signs of running out of steam, with a monthly increase of 4% in the Nasdaq 100 leaving the large-cap index up by more than 40% this year. Inflation has fallen sharply and the latest round of earnings reports from the tech giants were better than expected in most cases.

In the UK, stock markets recovered from a mid-month wobble, with the FTSE 100 ending the month with a 2% gain. But its year-to-date performance remains flat, thanks to the headwinds caused by high inflation and ongoing Bank Rate hikes.

As a result, trading on the London Stock Exchange was more muted, with the value of shares traded falling by 20% from its three-month high in June.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from interactive investor, AJ Bell and Hargreaves Lansdown.

What shares were investors buying?

There were only two new faces in July, with airline operator easyJet and online grocery chain Ocado featuring on the most-bought list for the first time.

Otherwise, it was business as usual with Tesla, Legal & General, Lloyds and Glencore being among the most-bought shares yet again.

Large-cap UK stocks monopolised buy-lists in July, with investors attracted by the high dividend yields on offer. Sector-wise, financial services also featured strongly, with a smattering of miners and pharmaceutical companies.

Victoria Scholar, head of investment at interactive investor, said: “UK blue-chips are a mainstay of many customers’ portfolios. Vodafone, Legal & General and Aviva boast annual yields of over 8%, appealing to investors on the hunt for income.”

Electric car manufacturer Tesla returned to the top spot in July for the fifth time in the last year. While investor appetite soured after their latest results, sending the share price down by 13%, its share price has more than doubled since the start of the year.

Danni Hewson, head of financial analysis at AJ Bell, said: “It seems Tesla and Elon Musk are not done with price cuts. For now, the company’s industry-leading margins are holding up better than feared, however guidance for further reductions and the prospect of factory downtime affecting production has led a share price which has been motoring all year to splutter a little.

“Tesla is still in an enviable position in the electric vehicle market which is why so many investors are along for the journey even if there may be some bumps in the road in the short term.”

Although easyJet remains well below its pre-pandemic high, its share price has also soared by almost 40% this year on the back of the recovery in international travel.

Ms Scholar said: “Clouds are parting for the low-cost carrier, which is predicting a record summer of profits thanks to increased ticket prices as well as the rebound in international travel over the seasonally crucial holiday season.”

Ms Hewson added: “Strikes have become part and parcel of the job in the aviation industry and consumers still seem happy to splash the cash on holidays despite the ongoing cost-of-living crisis.

“In this situation, management will press on with longer-term growth plans as navigating pockets of turbulence comes with the job.”

US tech stocks Microsoft and NVIDIA also made the most-bought list, with investors looking for opportunities to add artificial intelligence exposure to their portfolios.

Ms Scholar said: “Microsoft has attracted investors as a proxy play to this year’s hype around artificial intelligence (AI), with earnings in July outlining aggressive AI spending plans, which spooked investors and punished its share price.

“Perhaps the attention around its results attracted more customers to buy shares after the mini pullback. Microsoft has been another standout stock market winner so far this year.

What shares were investors selling?

Ocado and investment platform Hargreaves Lansdown were the only new companies on the sell list for July.

As with previous months, blue-chip companies Rolls Royce, BP, Lloyds and Legal & General featured once again on investors’ sell lists.

Tesla was the most-sold share for the third month running as investors decided to profit-take after its stellar share price performance this year. Margins remain under pressure while Chinese electric vehicle manufacturers are taking aim at the European market in which Tesla has a strong foothold.

Another regular is Rolls Royce, whose share price has flown up by more than 140% in the last year alone. The aerospace company continues to recover from the near shutdown in aviation during the pandemic.

Ms Scholar said: “Rolls Royce has enjoyed a blockbuster run so far in 2023, topped off late last month by a 45% full-year operating profit upgrade.

“Over the past six months, the engine maker has been the best performing stock on the FTSE 100, surging over 60%. In May, CEO Tufan Erginbilgic who took over in January, said its turnaround was moving at pace and reiterated the company’s full-year guidance.”

Investment services provider Hargreaves Lansdown also fell out of favour with investors. Its shares jumped by 20% on its latest trading update, with an increase in net new clients and assets under management.

However, investors were seemingly tempted to cash out at the five-month high in July, with the share price subsequently falling back by 14%. Trading volumes have fallen, which the company attributed to cost-of-living issues, rising interest rates and market volatility.

And competition amongst trading platforms shows no signs of abating. The growing popularity of zero-commision platforms has prompted most of the mainstream providers to trim fees in the last few months alone.

Looking ahead

Uncertainty remains firmly on the menu for investors in UK companies. While inflation has fallen to its lowest level in more than a year, it remains well above its 2% target and current forecasts suggest that at least one more base rate increase will be required.

Laith Khalaf, head of investment analysis at AJ Bell, said: “Interest rate hikes will inflict more pain on consumers and businesses.

“Furthermore, the news from the Bank on the economy is not bright. Britain had better prepare for economic stagnation, because the latest projections from the Bank of England show almost no growth in the coming two years.”

While the US seems to have inflation under control, the Fed has pushed forward with another interest rate hike to hit its highest rate in more than 20 years. This was followed by a downgrade in the rating of US government debt by credit rating agency Fitch.

Mr Khalaf added: “The decision by the credit agency to cut the rating led to higher US government bond yields which in turn has a negative impact on equities.”

As a result, investor sentiment looks set to remain finely-balanced until the interest rate hikes and high inflation are firmly in the rear-view mirror in both the UK and the US.

Given the mixed outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets such as bonds and commodities. It’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

Top 10 Most Bought And Sold Shares In June 2023

June brought good news for investors on both sides of the Atlantic, although it was a rosier picture in the US, writes Jo Groves.

The Nasdaq 100 continued its upward march, adding a monthly gain of 7% to end the half-year with a 40% increase. Inflation continued to fall in the US and investor appetite for growth stocks shows no signs of diminishing.

But UK stock markets struggled to hold their own, with the FTSE 100 posting a gain of just 1% in June. The leading large-cap index remains well below its 8,000 peak in February as stubbornly high inflation and fears of a recession continue to weigh on valuations.

Meanwhile, trading on the London Stock Exchange was the highest for three months, with £84 billion of shares changing hands during June.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from interactive investor, AJ Bell and Hargreaves Lansdown.

All forms of investment involve risk to capital, and you may get back less than you put in. Past performance is not an indicator of likely future performance. Neither the value of an investment, nor any income derived from it, are guaranteed. Both can fall as well as rise.

What shares were investors buying?

June saw two new entrants, with commodity producer Premier African Minerals and cruise operator Carnival making their debut on the most-bought list.

There were also some familiar faces, with Tesla, Legal & General and Lloyds featuring on the most-bought list at least nine times over the last year.

Large-cap stocks were firmly on the menu for investors in June, with commodity and financial services companies dominating the buy list. These continue to offer attractive dividend yields for income-seeking investors and a relative safe haven amid market uncertainty.

Victoria Scholar, head of investment at interactive investor, comments: “Many investors are sticking to those FTSE 100 blue chip names, which continue to dominate the most popular list of stocks and seem to be the key mainstays of many portfolios.”

Financial services giant Legal & General replaced Lloyds as the most-bought share in June, with investors tempted by the 7% fall in share price following its announcement of a new CEO.

Russ Mould, investment director at AJ Bell, comments: “The new boss has a hard act to follow. Since Nigel Wilson was appointed to the top job in 2012, Legal & General shares have outperformed life insurance peers Aviva and Prudential to chalk up a total return of more than 200%.

“This could provide his successor, Antonio Simoes, with the opportunity to take Wilson’s approach of focusing on long-term assets and so-called ‘inclusive capitalism’ to another level, but that comes with uncertainty too, after more than a decade of leadership continuity.”

The popularity of Tesla also shows no signs of abating, with the electric vehicle manufacturer rewarding shareholders with a near 30% rise in share price in June. And it’s continued to climb further after the company announced record deliveries in the second quarter of 2023.

ii’s Victoria Scholar comments: “We’ve seen Tesla’s shares surge more than 100% in the first half, making it a top performer stateside, bouncing back after the sharp sell-off across mega-cap tech last year.

“It’s a company that often dominates the headlines and its impressive share price performance this year has added to its allure.”

Small-cap commodity producer Premier African Minerals boasts a flagship lithium mining project in ZImbabwe. It has delivered an 80% gain in share price over the last year, but it’s not for the faint-hearted, suffering a 27% fall in share price in June.

Carnival cruised into investors’ hearts with a 66% gain in June on the back of record second-quarter revenue. The company is forecasting 100% occupancy for the current financial year, which should help the company move back into profit after the pandemic took its toll on travel.

What shares were investors selling?

As with the most-bought shares, Carnival and Premier African Minerals were the only new companies on the sell list, as investors sought to take advantage of share price swings.

As in previous months, the most-sold list was dominated by UK blue-chips, with Rolls Royce, BP, Lloyds and Legal and General having featured regularly over the last year.

Once again, Tesla was the most-sold share, with investors profit-taking after a meteoric 160% year-to-date rise in share price. Swingeing price cuts may have boosted demand but competition from Chinese electric vehicle manufacturers is hotting up.

Second position went to Rolls Royce which is another regular on the most-sold list. The company’s share price finished the half-year almost 50% higher than the start, with the recovery of the aviation sector proving a tailwind for the engine maker.

NVIDIA has been a rare sight on our most-sold list, but investors cashing out in June banked a near-doubling in share price over the first half of the year. The high-tech chip maker has reaped the rewards for soaring investor appetite for AI related stocks.

Unfortunately, a happy ending looks unlikely for Cineworld investors, with its share price continuing to flatline as the company grapples with restructuring.

Danni Hewson, head of financial analysis at AJ Bell, comments: “The cinema empire has been battling through the kind of disaster usually reserved for the movies it plays but what will the chain look like once the impending restructuring is over?

“The pandemic didn’t just shut the doors temporarily; it altered the cinema-going landscape for good. Sloughing off debt and shrinking costs will give the business a chance, but the next act won’t be an easy one to write.”

Looking ahead

It seems likely that the fortunes of the UK and US will continue to diverge over the next few months. With inflation back to 4%, the Fed has been able to press the pause button on further interest rate hikes, while the Bank of England has no such luxury.

AJ Bell’s Danni Hewson comments: “There’s little doubt that what’s happening in the mortgage market is deeply destabilising to the economy.

“The UK might have skirted recession up until now but suck thousands of pounds out of the pockets of middle earners and all those retailers, hospitality businesses and other service sector companies are likely to take a hit, and the uptick in GDP might not be forthcoming in the months ahead.”

Richard Hunter, head of markets at interactive investor, comments: “The US economy remains on a growth trajectory despite the Federal Reserve’s aggressive interest rate hiking policy to date. Recent data have all added to hopes that a soft economic landing can be engineered.”

However, he cautions: “The Nasdaq in the US has been a star performer, propelled by a handful of mega-cap tech stocks following a torrid 2022. This concentration of performance has been of some concern to investors given that it masks more pedestrian gains elsewhere in the US.”

Although US stock markets have officially exited bear territory, investor sentiment is likely to remain fragile until high inflation is firmly in the rear view mirror.

Given the uncertain outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets such as bonds and commodities.

It’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

Top 10 Most Bought & Sold Stocks & Shares In May 2023

May brought mixed fortunes for global stock markets, with the US heading upwards as the UK moved in the opposite direction, writes Jo Groves.

The Nasdaq 100 continued its positive momentum, increasing by 8% over the month (and up by a third since the beginning of the year). Investor sentiment was buoyed by signs that interest rates may be close to peaking in the US, together with resolution of the stand-off over the government debt ceiling.

In contrast, the FTSE 100 relinquished its gains from April, sliding by 4% over the course of May. The leading UK index finished the month at 7,400, with its record high of 8,000 in February firmly in the rear-view mirror.

This prompted an increase in trading on the London Stock Exchange, with £80 billion of shares changing hands during the month.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from interactive investor, Freetrade, AJ Bell and Hargreaves Lansdown.

What shares were investors buying?

There was only one new entrant in May, with semiconductor chip maker NVIDIA making its debut on the most-bought list for the first time.

After a few months off the buy list, telecoms company Vodafone, housebuilder Persimmon and US tech giant Alphabet were also among the most-bought shares for the month.

Lloyds dislodged Legal & General as the most-bought share in May, with investors tempted by the 10% month-on-month fall in its share price.

While fears of an increase in loan defaults spooked some investors, the banking provider announced quarterly results comfortably ahead of analysts’ expectations, along with an attractive dividend yield for income-seekers.

Vodafone took second place, with a near 20% slide in its share price in May. The telecoms operator posted another lacklustre set of results and investors will hope that the new chief executive, Margherita Della Valle, delivers on the company’s turnaround plan.

Danni Hewson, head of financial analysis at AJ Bell, comments: “Vodafone’s trading update pulled no punches and job cuts aren’t the solution to the company’s current crisis. Customers must be at the heart of any consumer-facing business and the satisfaction levels among Vodafone’s customers say it all.”

Overall, FTSE blue-chips dominated the most-bought list once again, particularly in the financial services and commodity sectors where Aviva, BP and Glencore made the cut.

Richard Hunter, head of markets at interactive investor, comments: “The best buys for May showed an element of investor entrenchment, with a notable focus on highly-yielding dividend stocks, such as Aviva and Glencore (both 8%).

“Equally, there was the usual speculative mix of potential recovery situations, with insurers Aviva and Legal & General dropping by 11% and 9% respectively.”

What shares were investors selling?

There were three new names on the most-sold list, in the form of mining company Polymetal International and semiconductor manufacturers AMD and NVIDIA.

Having featured regularly over the last year, Rolls Royce, BP and Lloyds also made the top 10 once again.

Tesla was the most-sold share in May, with investors profit-taking after its share price rose by more than 20% in the month (and almost doubled over the last six months).

Its share price was boosted by strong results on the back of sizeable price cuts, while the company recently announced a partnership with Ford to use Tesla’s supercharger network.

That said, darker clouds are starting to gather for Tesla, with the risk of a slowdown in consumer spending and stiff competition from other electric vehicle manufacturers.

Second position went to NVIDIA which made the most-sold list for the first time. Its share price surged to a record high in May after a strong set of earnings, prompting investors to cash in on a year-to-date increase of over 170%.

Russ Mould, investment director at AJ Bell, comments: “Last year’s share price slump after a profit warning, a slowdown in demand for graphics card sales and a surge in inventory all seem like a distant memory after NVIDIA’s better-than-expected first-quarter results and huge upgrade to second-quarter revenue and profit forecasts.

“The stock is on the cusp of becoming the first silicon chip specialist to have a $1 trillion market cap, as chief executive Jensen Huang identified artificial intelligence (AI) as a key driver of increased demand.”

Elsewhere, there was a noticeable slant towards US technology stocks, with Amazon, Alphabet and Microsoft on the sell list. All three have rebounded from their stock market maulings in 2022 but maintaining profit margins may become increasingly challenging in coming months.

Looking ahead

Uncertainty remains firmly on the menu for investors, with economic and geopolitical issues continuing to swirl around stock markets.

With inflation not falling as quickly as hoped, further interest rate hikes are expected in the UK. That said, the outlook is more positive in the US after the sharp drop in inflation and the resolution of the potential breach in the government debt ceiling.

Looking ahead, stock markets on both sides of the Atlantic remain vulnerable to further shocks. AJ Bell’s Russ Mould comments: “With disaster averted for now, attention will turn to other matters which have been overshadowed by the drama in Washington.

“This isn’t necessarily a good thing for markets as there is plenty to worry about, including a sluggish recovery in China and continuing risks around recession and rates in the West.”

Added to this, US stock markets are closely tied to the fortunes of the $1 trillion plus quartet of Microsoft, Amazon, Alphabet and Apple. If inflation comes in higher than expected in May, another rise in rates by the Fed would put pressure on the valuations of US tech stocks.

Given the uncertain outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets such as bonds and commodities. It’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

10 Most Bought And Sold Shares In April

April saw stock markets return to a more stable footing as panic subsided over a possible crisis in the global banking sector, writes Jo Groves.

The FTSE 100 recovered from its steep fall in March to post a 3% gain in April. The UK large-cap index ended the month at just under 7,900, edging back towards its record high of 8,000 in February.

On the other side of the pond, the Nasdaq 100 continued to climb back into positive territory after a bruising 2022, adding a modest gain of 0.5%. However, the US index is still trading well below its all-time high of over 16,000 in 2021, closing the month at 13,200.

It was a quieter month for trading on the London Stock Exchange, with £66 billion of shares changing hands, its lowest level in almost two years.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from interactive investor, Freetrade, AJ Bell and Hargreaves Lansdown.

What shares were investors buying?

There was only one new entrant in April, with leisure group TUI making the most-bought list for the first time, while BP and Microsoft returned after a few months outside the top 10.

Legal & General claimed the top spot as the most-bought share in April, with investors swooping on the insurance group after its share price dropped by 10% during the month.

Mark Crouch, analyst at eToro, commented: “L&G isn’t exciting, but there is plenty more for investors to cheer in its full-year results. It’s cash generative, highly capitalised, has grown its dividend and has a highly diversified business model.”

Tesla was knocked into second place in April, despite the electric car manufacturer having taken the top spot regularly over the last six months.

Victoria Scholar, head of investment at interactive investor, comments: “Tesla once again features in the list, despite reporting disappointing first quarter results.

“After shares in the electric vehicle company surged in the first quarter of 2023, its share price has been declining over the last month, prompting opportunistic Tesla bulls to pounce on this stock at a discount.”

Commodity firms dominated the most-bought shares in April, with Glencore, Rio Tinto and BP making the top five once again. These companies continue to appeal to income-seeking investors, with generous dividend and share buyback programs.

And it was a similar story elsewhere, with investors continuing to favour FTSE heavyweight dividend-payers such as Barclays, GSK and Lloyds.

What shares were investors selling?

As in previous months, the usual suspects featured among the most-sold shares once again. And where some investors saw an opportunity to buy, others chose to profit-take with Lloyds, Legal & General, BP and Glencore also making the most-sold list.

Barclays was the most-sold share for the first time, as investors cashed in on a 10% price in its share price following its latest results.

AJ Bell’s Russ Mould comments: “The UK banks’ reporting season was off to a strong start as Barclays beat first quarter expectations. It is all a far cry from 15 years ago when Britain’s banking system was right in the eye of the storm during the Great Financial Crisis.

“Barclays is doing what a bank should do by benefiting from a higher interest rate environment, boosting its net interest margin by increasing the amount it charges on loans by more than the amount it pays out on deposits.”

Another bank on the sell list was Lloyds, with investors running out of patience as its share price continued to head downwards. While higher interest rates have boosted profits, a decline in customer deposits and a possible rise in defaults on loans may prove a headwind over the coming months.

There was also a noticeable shift away from US tech stocks, with investors selling Amazon, Microsoft and Meta shares. All three enjoyed share price gains in April, with their latest quarterly results ahead of analysts’ expectations.

However, tougher times may be ahead, particularly if the high growth in cloud services revenue stalls. Competition is also hotting up in the artificial intelligence (AI) sphere with Microsoft leading the way with its roll-out of ChatGPT, its AI chatbot.

Looking ahead

Uncertainty is set to persist for some time yet, with inflation remaining stubbornly high despite repeated hikes in interest rates by both the UK and US central banks. Despite optimism that inflation is starting to slow, investors will be wanting to see interest rates starting to level off.

The prospect of an economic slowdown continues to cast a shadow on US stock markets, which are closely tied to the fortunes of the large tech firms.

The big four of Microsoft, Amazon, Alphabet and Meta reported better-than-expected results in the latest earnings season, with cost-cutting measures helping their bottom lines. However, they face a squeeze on consumer and business spending on advertising and cloud services in a cooling economy.

Russ Mould, investment director at AJ Bell, comments: “The markets are getting into a bit of a funk despite strong earnings from the tech sector.

“Inflation continues to stick like glue and the economy is starting to show signs of real strain, while the impact of the big increase in interest rates is being felt in a financial system which continues to creak.”

There are also fears that the UK stock market may start to run out of steam in the months ahead. Appetite for banking stocks has stalled, while an economic downturn could put the brakes on generous dividends and share buy-back programs from the likes of BP and Shell.

Given the uncertain outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets and sectors.

It’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

Top 10 Most Bought And Sold Shares In March

Having made reasonable gains at the start of the year, stock markets proved to be more of a challenge for investors in March 2023, a month dominated by a meltdown in the banking sector, writes Andrew Michael.

US and European markets both managed to finish the month ahead, after global authorities took rapid action to contain problems that began with the collapse of a little-known US savings institution, Silicon Valley Bank, and culminated in the takeover of Credit Suisse by arch-rival UBS, two titans of Swiss banking.

The UK market, however, was a less happy trading environment for investors. Having burst through the 8,000 level for the first time ever in February, the FTSE 100 index of leading shares went into reverse last month as fear of banking contagion spread.

The Footsie closed on 31 March at 7,631, about three percentage points down on the month.

Based on data from the investment platforms Hargreaves Lansdown, AJ Bell and interactive investor, we’ve compiled a list of the top 10 most bought and sold stocks in March.

All forms of investment involve risk to capital and you may get back less than you put in. Past performance is not an indicator of likely future performance. Neither the value of an investment, nor any income derived from it, are guaranteed. Both can fall as well as rise.

What shares were investors buying?

Financial companies figured highly in the ‘most bought shares’ column in March, with a first showing in our lists for the fund management firm, M&G, and the re-appearance of life insurer Aviva after a break of several months.

Victoria Scholar, head of investment at interactive investor, said: “Both stocks suffered over the course of the month. Opportunistic investors appear to have been capitalising on the respective share price declines of these companies to pick up these stocks at a discount, amid hopes of a recovery as the banking crisis eases.”

Another life insurance company, Legal & General, also proved popular, along with three high street banking names: Barclays, HSBC and Lloyds.

In contrast, investors continued last month’s theme of shunning US tech stocks such as Amazon and Apple. Having secured top slot last month, it was also notable that electric car maker Tesla failed entirely to make the top 10 buy list during March.

What shares were investors selling?

In terms of the companies investors were looking to sell last month, there remained a fair amount of overlap compared with February’s ‘most sold’ list.

Heavyweight dividend payers, BP and Glencore, continued to be sold-off by investors, and the same applied to Rolls-Royce, the aero engine to car-making business. Rolls-Royce features in both our ‘most bought’ and ‘most sold’ lists this month, suggesting some investors are content to take profits, while others believe there is more to come from the business.

Ms Scholar said: “Rolls-Royce has had an incredibly strong start to 2023 in terms of its share price, up by over 50% thanks to the revival in aviation post-covid. In addition, the company’s new chief executive, Tufan Erginbilgic, appears to be charming investors with his transformation plans.”

Having swerved a showing in February’s ‘most sold’ column, Tesla carried on where it left off in January with an appearance in the top 10 for March.

Looking ahead

Investors look set to be confronted with continued uncertainty over the next few months, as markets weigh up a complicated mix of economic conditions.

Inflation both here and abroad remains high for now and it’s unclear how much extra monetary tightening central banks are willing to apply to dampen down rising prices to tolerable levels.

Following a challenging period blighted by rising interest rates and a cost-of-living crisis, growth-oriented stocks have figured less prominently among investor purchases than they once did.

That said, some of the tech sector’s most high-profile names, including Apple, Google, Meta and Tesla, have staged appreciable recoveries so far this year – despite last month’s drama in the banking sector.

To what extent and for how long investors can suppress their willingness to pile back into some of these names – several of the most successful businesses of the past decade – remains to be seen.

Danni Hewson, head of financial analysis at AJ Bell, said: “Risk appetite is returning but the real test is possibly still to come with the next set of earnings updates, which will provide some clarity on whether investors are still putting too high a value on big US brands at a time when the consumer is still under pressure.”

Top 10 Most Bought And Sold Shares In February

Stock markets may have started the new year strongly but equity investors faced a decidedly more mixed bag in February.

The FTSE 100 continued to buck the general malaise, hitting a record high of over 8,000 as economic data proved better than feared. The large-cap index subsequently dipped under 7,900 but managed to deliver a modest gain over the month as a whole.

However, it was a different picture on the other side of the Atlantic after January’s mini-rally. The Nasdaq 100 retreated on fears that interest rates may remain elevated for some time yet to cool stubbornly-high inflation.

It was also a busy month for trading on the London Stock Exchange, with £79 billion of shares changing hands, the highest level in three months.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from Hargreaves Lansdown, interactive investor and AJ Bell.

What shares were investors buying?

There were two new entrants in February, with Barclays and BAE Systems featuring among the most-bought shares for the first time, while housebuilder Persimmon made its first appearance in several months.

At the other end, the US tech giants failed to make the top 10 for the first time in several months, with Amazon, Apple and Alphabet being regular entries over the last year.

Tesla took top spot on the most-bought shares list for the fourth month running. Although remaining well below its all-time high of over $400, the company’s share price has almost doubled in 2023, and is currently trading around the $200 mark.

Keith Bowman, investment analyst at interactive investor, comments: “Momentum in shares of electric vehicle maker Tesla carried on through to February following a highly buoyant January.

“Record early year order demand, following announced vehicle price cuts in December, helped set the ball rolling, pushing its shares up 40% in January and 19% in February. That follows a 65% fall during 2022. The Nasdaq listed stock remains closely watched by retail investors.”

While demand for electric cars continues unabated, competition is hotting up amongst the leading players in this market. BYD, the Chinese car manufacturer backed by Warren Buffet, made headline news by dethroning Tesla as number one for electric car sales globally in 2022.

Banking firm Lloyds continues to feature heavily in both the most bought and sold lists. Russ Mould, investment director at AJ Bell, comments: “Add a forecast £1.8 billion dividend to a proposed £2 billion share buyback and Lloyds is, in effect, offering its shareholders an 11% cash yield on its £34 billion market capitalisation.

“That even beats inflation, let alone returns from cash in the bank or government bonds, so patient investors may well be inclined to just sit and wait out any economic – or political – squalls.”

And it was a similar story elsewhere, with investors continuing to favour FTSE heavyweight dividend-payers such as Barclays, BAE and BT. Miner Glencore and telecoms behemoth Vodafone top the list for income-seekers, currently trading on dividend yields of more than 7%.

What shares were investors selling?

There was little change in the most-sold list in February, with most of the top 10 featuring regularly over the last year.

As with the most-bought shares, FTSE blue-chips such as BP, Shell, Lloyds and Glencore dominated the most-sold shares list.

Rolls-Royce knocked Tesla off the top spot as the most-sold share in February, with its share price soaring by more than a third as full-year profits significantly beat analysts’ forecasts. The company’s share price has risen by almost 75% over the last year, prompting some investors to profit-take.

Keith Bowman, investment analyst at interactive investor, comments: “Above forecast results and a drive by the aero engine maker’s new CEO to increase efficiency underpinned a more than one third increase in Rolls Royce shares over the month.

“Investors have been monitoring Rolls Royce shares for a hoped-for recovery from the pandemic for some time now.”

Although Lloyds was a firm favourite amongst share buyers in February, it seems other investors were less convinced that the company can translate higher interest rates into profits on the back of its latest results.

AJ Bell’s Russ Mould explains: “The numbers themselves were broadly in line with what had been forecast, though updated medium-term guidance will likely disappoint the market given it falls short of what its closest lookalike – NatWest – is promising in terms of returns.

“Lloyds is facing its own pressures on costs, although the company remains confident in its ability to keep rewarding shareholders with generous dividends and share buybacks. Given a sketchy track record and an uncertain outlook this may not be enough to secure the patience of investors.”

Investors were also cooling on commodities, divesting shares in oil and gas firms BP and Shell and miners Glencore and Rio Tinto.

These firms have delivered bumper profits over the last year as commodity prices soared, however, the outlook is more uncertain. Despite the expected rebound in demand from China, an economic recession could take its toll on global demand for commodities.

Looking ahead

Stock markets are likely to face continued uncertainty over the next few months, with investors hoping that steep interest rate hikes start to tame inflation on both sides of the pond.

AJ Bell’s Russ Mould comments: “The market lacks an explicit steer on US rates until the Federal Reserve’s next rate decision meeting concludes on 22 March.

“Competing narratives around a pivot away from rate hikes and a soft landing for the US economy on the bull side, and sticky inflation and rates staying higher for longer than the market hoped will collide then. Whichever prevails could well define the direction of the market for the next few months at least.”

However, given the uncertain outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets and sectors. If you’re looking to trade in shares, it’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

Top 10 Most Bought And Sold Shares In January

The new year finally brought some relief for investors, with stock markets starting the year with a bang.

Over the pond, there was good news for US stock markets after their battering last year. The Nasdaq 100 rose by over 10% in January, raising hopes of recovery in the valuations of beleaguered technology stocks.

While the FTSE 100 continued to stand firm against mounting economic headwinds, delivering a 3% uptick in January. And it’s since hit a record high at a whisker over 7,900.

It was also a busy month for trading on the London Stock Exchange, with an average of £3.7 billion of shares changing hands every day.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from Hargreaves Lansdown, interactive investor, AJ Bell and Freetrade.

Most popular shares in January 2023

What shares were investors buying?

January saw some new entrants, with Direct Line, Vast Resources and National Grid featuring among the most-bought shares for the first time. At the other end, BP and Vodafone dropped out of the top 10, despite making regular appearances over the last six months.

For the third month running, Tesla took top spot on the most-bought shares list. Buoyed by better-than-expected quarterly results, its share price has soared in the last month.

Danni Hewson, financial analyst at AJ Bell, comments: “Cutting prices is a strategy that appears to have paid off, at least for now. Tesla’s fourth quarter earnings boasted record profits, record deliveries and a forward order book that Elon Musk referred to as ‘high’.

“He noted there are ‘a vast number of people who want to buy a Tesla car but can’t afford it’ so the recent price changes are likely to widen the pool of potential buyers.”

That said, Tesla shareholders may still be nursing significant losses given it remains below half of its $400 high in late 2021.

Investor appetite for dividend-paying blue-chips continued, with insurance giant Legal & General, pharma company GSK and miner Glencore making the top-10 yet again.

Direct Line attracted some bargain-hunters after its share price plummeted by nearly a quarter on its trading update. The insurance group scrapped its dividend after a run of cold weather-related claims squeezed its cash position.

Russ Mould, investment director at AJ Bell, comments: “Direct Line had been happily buying back its own shares less than a year ago and left its capital buffers too bare to cope with a period of extreme weather events in 2022, which, while unusual, shouldn’t have been enough to put Direct Line in such a perilous position.”

Utility leviathan National Grid also caught the eye of investors, after a solid set of half-year results and strong track record of dividend increases.

Meanwhile Vast Resources rewarded shareholders with a near-quadrupling of its share price in January. The mining company announced that its decade-long litigation against the ZImbabwean government looks set to end amicably with the release of the large quantity of diamonds retained.

What shares were investors selling?

It might have been a new year but there were some familiar names in the most-sold list, with Tesla, Lloyds, Glencore and Rolls-Royce continuing to mark their place.

However, commodity plays BP and Rio Tinto were displaced by Canadian cannabis companies, Aurora Cannabis, SNDL and Canopy Growth.

Once again, Tesla was the most-sold share in January. As mentioned earlier, its share price has risen by 75% so far this year, providing an opportunity for shareholders to cash in given the macroeconomic challenges ahead.

easyJet shareholders were also tempted to lock-in a 50% rise in its share price in January. Victoria Scholar, head of investment at interactive investor, comments: “The low-cost carrier enjoyed a flying start to the year, reversing some of 2022’s declines as first quarter earnings saw a strong rebound in revenues thanks to its low-cost appeal.”

Banking provider Lloyds has rarely been out of the top three most-sold shares, having steadily recovered from its sharp fall in 2020 when it faced group litigation from mortgage customers.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, comments: “Lloyds is throwing a lot of money at a bit of a strategic pivot which will see it earn more money on things like fees rather than interest, but for now its net interest margins are the key metric to watch.”

However, shareholders may have been tempted to profit-take on the back of its 10% share price increase over the last month. Rising interest rates may also take their toll on Lloyds’ valuation if mortgage defaults start to tick up.

Looking overseas, it seems that Aurora Cannabis, SNDL and Canopy Growth shareholders may have finally run out of patience. Their share prices rocketed on the legalisation of cannabis in Canada in 2019, but have since fallen by between 85 to 98% thanks to increasing competition, falling demand and regulatory issues.

Looking ahead

It remains to be seen whether January marks a turning point for stock markets after a tumultuous 2022. Concerns over inflation remain centre-stage with investors hoping the latest hike in the base rate starts to trim the stubbornly-high inflation in the UK.

AJ Bell’s Danni Hewson comments: “You might be forgiven for wondering why champagne corks are popping after what’s been a pretty gloomy week for the UK economy, but markets aren’t mired in the here and now, they’re forward facing and investors like what they’re seeing on the horizon.

“Interest rates might have risen for the tenth time, inflation might take until the autumn to appreciably cool, but the fact that the Bank of England is forecasting that the oncoming recession won’t last as long as they’d feared is cause for celebration.”

However, given the uncertain outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets and sectors.

If you’re looking to trade in shares, it’s also worth taking the time to review our pick of the best trading platforms and stocks and shares ISA providers as fees can vary significantly.

Top 10 Most Bought And Sold Shares In December

The FTSE 100 continued to hold firm in December, although it wasn’t all plain sailing. The index of leading UK companies fell on the news of yet another base rate increase but recovered strongly to finish the year above 7,400.

It was also a quieter month for trading on the London Stock Exchange, with £3.8 billion of shares changing hands on average every day, down from £4.0 billion in November.

However, it was less happy news for investors on the other side of the Atlantic, with the US Nasdaq index heading down by almost 10% after its mini-rally in November. The UK smaller-cap FTSE 250 index suffered a similar fate, with a year-on-year fall of almost 20%.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from Hargreaves Lansdown, interactive investor, AJ Bell and Freetrade.

What shares were investors buying?

There were some new faces in December, with Argo Blockchain, Kala Pharmaceuticals and Sainsbury’s featuring amongst the most-bought shares for the first time.

At the other end, Rolls Royce and Lloyds failed to make the grade, despite having regularly been among the top-10 shares in previous months.

Tesla took top spot once more in December, with investors snapping up the stock as it suffered another near 40% fall in price during the month. The company has been punished for missing earnings forecasts, as it grapples with supply chain issues and slowing demand.

Russ Mould, investment director at AJ Bell, comments: “For much of 2022 Tesla’s share price was more befitting of a clapped-out old banger than a shiny, sleek machine, and it doesn’t look like there’s going to be an immediate change of speed for the company in 2023 given quarterly deliveries have fallen short of management expectations.”

Investors continued to show their support for ‘big dividend’ payers, with oil and gas giant BP and miner Glencore making the top-10 yet again. Although commodities firms enjoyed bumper profits in 2022, there are signs that the sector may see a more muted performance heading into 2023.

Investors also speculated on a potential rebound in the valuation of beleaguered US tech stocks, taking the opportunity to buy Apple and Amazon shares at their lowest price in over two years. Indeed, both companies have now lost over $1 trillion dollars from their peak valuations.

Another potential recovery play is Argo Blockchain, whose share price has crashed by nearly 90% over the past year. The embattled crypto miner is undertaking a significant restructuring as it tries to stave off bankruptcy.

Small-cap Kala Pharmaceuticals also caught the eye of investors, as its share price soared from $5 to $38 during December on news of FDA approval for its new drug for a rare form of eye disease. Investors should be prepared for a rocky ride, however, with its share price hitting $90 at one point earlier last year.

What shares were investors selling?

There was little change among the most-sold shares in December, with Lloyds and Rolls-Royce featuring in five of the last six months.

Commodities giants Rio Tinto, Glencore, Shell and BP also continued to dominate the list. With the exception of Rio Tinto, these companies have rewarded shareholders with a 30% plus share price increase over the last year but investors may be choosing to cash out at this point.

AJ Bell’s Russ Mould comments: “If central banks succeed in reining in inflation, reasserting control and taking the world back to the low-growth, low-inflation, low-interest ‘Goldilocks’ environment that prevailed throughout the 2010s, then commodity prices could again stumble. They may also do so if we do indeed get a deep recession.”

Tesla re-captured its accolade as the most-sold share in December, which it last earned in July. As mentioned earlier, Tesla is not immune to the slowdown in consumer spending and faces growing competition from other electric vehicle manufacturers such as BYD in China.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, comments: “Tesla has never been tested in times of recession. With the depth of the incoming economic crisis not yet known, we have reservations about how long Tesla can keep raising its prices without volumes and margins dropping.”

Looking ahead

The outlook remains uncertain for investors, with all eyes on whether the base rate hikes will start to quell high inflation. As a result, 2023 looks to continue the theme of high volatility and uncertainty over whether the FTSE 100 can continue to combat the economic gloom.

Mr Mould comments: “There is no shortage of downbeat data right now – war, inflation, recession and rising interest rates remain dominant themes.

“But who’s to say that what looks, on paper, like a cheap currency, coupled with a low earnings multiple and plump dividend yield for the FTSE 100, will not tempt buyers and confound the doubters in 2023?”

Investors will be scrutinising the next round of company earnings announcements, with UK retailers kicking off proceedings with trading updates later this week. Shareholders will want to see companies keep a tight control on costs in the face of a sustained economic downturn.

Given the unsettled outlook, investors may want to consider taking steps to position their portfolio more defensively, including diversifying into different assets and sectors.

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances as fees can vary significantly.

Top 10 Most Bought & Sold Stocks & Shares November 2022

The FTSE 100 continued to rally in November, putting October’s low of 6,800 firmly in the rear-view mirror. The index climbed by over 5% to finish the month at almost 7,600, only just below its three-year high in early 2020.

As a result, it was a busier month for trading on the London Stock Exchange, with the value of shares traded reaching £89 billion, up from £82 billion in October.

It was a similar story for investors on the other side of the pond, with the US Nasdaq index rising by 5% in November. However, the FTSE 100 continues to remain more resilient in the face of challenging macroeconomic conditions, rising by 1% in 2022 compared to a near 30% fall in the tech-heavy Nasdaq.

Danni Hewson, financial analyst at AJ Bell, comments: “Despite all the talk of recession, sky high inflation and an autumn statement designed to put hairs on any chest, UK equities have ended the month of November on a positive note.”

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from Hargreaves Lansdown, interactive investor, AJ Bell and Freetrade.

What shares were investors buying?

In keeping with the previous month, a number of companies made their debut on the most-bought shares list in November, with Harland & Wolff, ITV, Petrofac and Avacta featuring for the first-time.

Tesla took top spot in November, having been absent from the most-bought shares since August, with investors snapping up a potential bargain after a further 12% slide in its share price during the month.

This takes Tesla’s overall fall in share price to more than 45% this year, with the company’s valuation hit by a slowdown in consumer spending, along with question marks over CEO Elon Musk’s future role at the company given his purchase of Twitter.

Investor appetite for high dividend-paying UK stocks in more defensive sectors continues unabated, with financial services giant Lloyds and miner Glencore amongst the most sought-after shares. Both blue-chips are currently trading on dividend yields of around 4%, appealing to income-seeking investors.

Vodafone continues to be amongst the most-bought shares over the last few months, with opportunistic investors swooping as its share price continues to languish at its lowest level in 25 years.

Russ Mould, investment director at AJ Bell, comments: “Fresh ideas are needed at Vodafone as the challenges facing the company are significant. It operates in a highly competitive market both in terms of broadband and mobile and has struggled for years to generate meaningful growth.”

Rolls Royce has also been a perennial favourite with buyers over the last six months with its share price falling by over 25% in 2022.

However, November may have marked a turning point for the aerospace leviathan, with its share price climbing by nearly 12%. The company’s radical restructuring has started to make in-roads into its heavy debt burden caused by the impact of pandemic travel restrictions on the aviation sector.

Some investors may not be familiar with Belfast ship-owner Harland & Wolff but its share price certainly made a splash last month, increasing by more than 300%. The AIM-listed company is part of a consortium which has been granted preferred bidder status for a £1.6 billion Royal Navy contract, subject to final approval early next year.

BP and Legal & General were surprising omissions for November, having featured regularly over the last four months. However, both companies have enjoyed a 25% rise in share price from their recent lows, making their valuations more expensive for would-be investors.

What shares were investors selling?

After some new faces in October, it was back to the usual candidates among the most-sold shares last month, with Glencore, Shell and BP from the commodities sector, accompanied by Lloyds and Rolls Royce once again.

Miner Glencore was the most-sold share, with investors cashing in on the near 60% increase in its share price over the last year. While the company has benefited from soaring commodity prices, a global recession may trigger the reverse if demand starts to slow. Investor confidence has also been dented by recent bribery and corruption charges.

Shell and BP investors may also have been tempted to profit-take, with both companies enjoying a 40% increase in their share price in 2022. The outlook is more mixed, with the fall in oil and gas prices from their summer highs resulting in a quarter-on-quarter decrease in profits for both Shell and BP. Energy companies also face stiffer headwinds in the form of a further rise in windfall taxes over the next five years.

AJ Bell’s Russ Mould comments: “Many investors holding stocks in the oil and gas sector will have had a fortuitous year thanks to the surge in prices in the first half of 2022. However, it’s not been a one-way ticket to riches as these stocks have seen as many ups and downs as a rollercoaster at Alton Towers.”

Having been the most-sold share in the previous two months, Cineworld failed to make the top 10 in November. Given that the shares have lost over 90% of their value this year, shareholders may be waiting to see if the company manages to emerge from its bankruptcy proceedings intact. Rumours of a possible offer from rival cinema chain Vue has also triggered a 6% uptick in its share price over the last few days.

Looking ahead

Inflation and interest rates continue to create market volatility for investors, with the severe hikes in the base rate yet to tame rampant inflation in the UK and US. As a result, market volatility looks likely to persist for some time yet.

Danni Hewson comments: “Inflation is still very much in focus and with the Eurozone seeing its first fall in inflation in 17 months there is cause for cautious optimism.

“Commodity prices have been falling and countries have fought hard to fill energy voids left by sanctions on Russia. But let’s not get carried away – core inflation is unchanged, and winter is yet to really exert its grip.”

Although rising interest rates have taken their toll on valuations, depressed share prices may also represent a buying opportunity for longer-term investors.

Jason Hollands, managing director at Bestinvest, comments: “Share valuations have deflated considerably over the last 12 months as markets have adjusted to a tougher outlook for the global economy.

“In the UK, valuations of the large companies of the FTSE 100 are incredibly cheap compared to longer-term trends, trading at prices that represent 9.5 times their projected profits for the next year. The longer term average is just over 12 times and so this does represent a very considerable discount.”

Dan Lane, senior analyst at Freetrade, adds: “With 2022’s burst of chunky rate rises likely to give way to a less intense trajectory now, 2023 might rekindle the love of US growth stocks, especially if valuations coming down this year start to look too good to pass up. Inflation easing and rates levelling off will probably fire the starting pistol.”

With an uncertain outlook, investors may want to consider taking steps to protect their portfolio against a stock market crash, including diversifying into different sectors and asset classes such as bonds, property and commodities.

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances as fees can vary significantly.

Top 10 Most Bought & Sold Shares October 2022

Putting the political turbulence of September behind it, the FTSE 100 recovered its losses in October, climbing to reach almost 7,100 by the end of the month.

It was also a quieter month for trading on the London Stock Exchange, with the value of shares traded dipping by nearly 20% from its high of £100 billion in September. However, stock markets remain jittery due to the triple whammy of high inflation, interest rate hikes and growing signs of a recession.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from Hargreaves Lansdown, interactive investor, AJ Bell and Freetrade.

What shares were investors buying?

There was a wholesale change in October, with BT, Baron Oil, Microsoft, Thungela Resources and Diageo entering our most-bought shares list for the first time.

Cineworld took top spot as the most-bought share for the second month running as the embattled cinema chain tries to trade its way out of bankruptcy. Buyers will be hoping for some potential upside given the 93% fall in its share price over the last year.

With investors looking for higher returns to offset soaring inflation, income-seekers may have been attracted by the 6-8% dividend yield being offered by pharmaceutical and telecoms blue-chips GSK and BT.

Dan Lane, senior analyst at Freetrade, comments: “The UK’s Covid-ravaged dividend landscape is back to rude health and investors are only too keen to jump back into some decent payers on low valuations.

“There is clearly an appetite for stocks yielding above the FTSE’s current 4% level. It’s probably not a surprise to see the hunt for yield return at a time when the trajectory for US tech looks more precarious than at any point since the pandemic began.”

On that note, US technology stocks also came back into favour with UK investors as disappointing quarterly results triggered another slide in share prices. Although Alphabet and Microsoft dipped during October, Amazon was hit the hardest, with its shares falling by 23%, marking a 43% fall over the last year.

Lee Wild, head of equity strategy at interactive investor, comments: “There appears to have been some bargain hunting during the month of October, and this may have paid off for some investors buying cheap US stocks.”

Rolls Royce, Lloyds and Legal & General were surprising omissions for the month, having been among the top 10 most-bought shares for the last four months. Both Rolls Royce and Legal & General enjoyed a rise in share price in October, making their valuations more expensive for would-be investors.

What shares were investors selling?

There was even more movement in the shares investors were selling last month, with eight of the new entrants not previously featuring on our most-sold lists.

In came Apple, GameStop, Amazon, Boohoo, Rio Tinto, ITM Power and Victoria for the first time. Out went BP, Glencore, Tesla and IAG, despite appearing regularly among the most-sold shares in previous months.

Cineworld was the most-sold share for the second month running, as the company teetered on the edge of liquidation. However, sellers may be wondering if they sold their shares prematurely, given the rally in its share price over the last two weeks with the announcement of a possible lifeline from lenders and landlords.

In the commodities sector, investors were disposing of Shell, Rio Tinto and Anglo-American shares.

Against soaring wholesale energy prices, shareholders in Shell have enjoyed a 40% rise in share price over the past year but may be fearful of the threat of further windfall taxes, while the flurry of one-off bumper dividends from mining companies such as Rio Tinto and Anglo-American also seems to be coming to an end.

Apple and Amazon also made the most-sold list for the first time in five months, amid the pressure on earnings from a deteriorating macroeconomic environment and fears of a further downgrade in share prices.

Freetrade analyst Gemma Boothroyd comments: “Valuations are dropping but, for the most part, tech still doesn’t look cheap given the inflationary backdrop. Overall, tech valuations are inching towards more appropriate representations of the companies underneath. But for most of the titans, there might be a way to go until the bottom.”

US video-game retailer GameStop also made the most-sold shares list with investors cashing in on the 13% rise in share price during the month. The company became notorious during the ‘meme stock’ frenzy of 2021 when private investors took on the hedge funds short-selling the stock.

Looking ahead

Inflation and interest rates continue to cast a long shadow over stock markets, with the Bank of England trying to balance the need to dampen spiralling inflation with the risk of triggering a prolonged recession.

Jason Hollands, managing director of Bestinvest, comments: “Choppy markets and weak investor sentiment can have numerous causes, including central bank decisions impacting liquidity, geopolitical crises, as well economic downturns.

“This year has seen a perfect storm with all three of these combining to create a towering wall of worry.”

However, it’s not all bad news for UK investors with Freetrade’s Dan Lane commenting: “Higher rates are taking the shine off US tech but they might actually be good for UK stocks. The banks, insurers and general value sectors ignored over the pandemic could do well in a higher-rate environment and the UK market is full of them.”

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances as fees can vary significantly.

Top 10 Most Bought & Sold Shares September 2022

September proved an eventful month for the UK stock market. The FTSE 100 was well on the way to recovering August’s losses until the markets were spooked by a rise in the base rate and concerns over unfunded borrowing in the government’s tax-cutting mini-budget.

The FTSE 100 index of large-cap shares hit a high of 7473 during the month but fell back by 8% to 6894. While the mid-cap FTSE 250 was harder hit, falling from its month high of 19514 to end the month at 17168, a drop of 12%.

As a result, it was a busy month for trading on the London Stock Exchange with the total value of shares traded coming in at £100 billion, the highest level in the past four months.

As for the most-traded shares, we’ve compiled a list of the top 10 stocks based on data from AJ Bell, Hargreaves Lansdown, interactive investor and Freetrade.

Note: investing in individual stocks and investment funds is speculative and places your capital at risk. You might lose some, or all, of your money.

UK share trading in September 2023

Investor sentiment

The government’s tax-slashing mini-budget on 23 September proved a seismic event for the London stock market. The FTSE 100 fell to its lowest point in 18 months, while the pound plunged to its lowest level of $1.03 against the dollar since 1971.

Soaring inflation, currently near a 40-year high in both the US and UK, and rising interest rates also continued to dampen investor sentiment.

The Bank of England and the Federal Reserve (the central bank in the US) hiked interest rates by 0.50% and 0.75% respectively in September in their attempts to control inflation. Although further rate rises are expected, the central banks face a delicate balancing act to avoid triggering a full-blown recession.

UK equities fell overall during September although, sector-wise, mining and energy shares continued to be more resilient due to rising commodity prices.

However, the valuations of banks took a hit in September after holding up well over the last few months. The sharp increase in government bond yields had a knock-on impact on the pricing of mortgage rates, precipitating a mini crisis in the mortgage market with providers pulling hundreds of mortgage products.

Housebuilders also suffered a similar fortune with the expectation of further interest hikes triggering a slump in the property market. But there was some positive sector news with the government announcing a cut to stamp duty, although growth in house prices slowed to single digits in September.

The weakening of the pound also had a positive impact on some share prices in September. The FTSE 100 companies with significant non-UK operations, such as Diageo and Coca-Cola, had a boost in the sterling value of their overseas revenue from the weakening of the pound.

What shares were investors buying?

With four new entrants from the previous month, September marked a notable change to the most popular shares on investors’ buy lists with BHP, GSK, Bed Bath & Beyond and Tesla replaced by Taylor Wimpey, Aviva, Persimmon and Barratt Developments.

Keith Bowman, investment analyst at trading platform interactive investor, said: “Share price falls of up to a fifth during the month for housebuilders Persimmon, Taylor Wimpey and Barratt Developments left investors taking interest.

“Expected interest rate rises and a chaotic mortgage market following the mini budget all weighed on prospects.

“Cuts to stamp duty and the cancelling of a planned increase in corporation tax announced within the mini budget both swayed to the upside, with forecast double-digit dividend yields for all three FTSE 100 companies leaving them firmly in the gaze of income-orientated investors.”

Legal & General remained one of the most bought shares for the third month running.

Pension funds have faced a turbulent time in the wake of the mini-budget, with the upturn in government bond yields creating a challenge in balancing their investment positions. This contributed to a 14% fall in L&G’s share price in September due to its sizeable pension arm.

However, this dip in share price may have attracted new investors, with Mr Bowman commenting: “Like the housebuilders, that added to the attraction of a now more than 8% historic and estimated future dividend yield.”

Vodafone dropped down the list from its position as the most bought share in August as its share price continued to slide, falling by 13% in September.

Vodafone is facing a number of issues, with concerns over the huge cost of the 5G rollout on its debt burden and the impact of inflation on consumer spending. Earlier this week, Vodafone announced it was in talks with Three about a possible merger.

Rolls Royce also remains in the top four most bought shares for the third consecutive month, as its share price continued its downward trajectory, falling by nearly 50% in the last year.

The company continues to struggle with high debt after the disruption to aviation in the pandemic, however, investors may see the depressed share price as an opportunity to buy on the dip.

What were the most-sold shares?

In the most-sold shares list, Tesla, Haleon, Bed Bath & Beyond, and IAG made way for Barclays, Unilever, L&G and Thungela Resources.

Cineworld took top place as the most sold share (as well as the most bought), with its share price collapsing to its lowest ever price of 1.8 pence. This is some fall from grace given its share price topped 320 pence in 2017.

Cineworld has struggled to refinance its heavy debt burden caused by the drop in revenue during lockdown. Having filed for Chapter 11 bankruptcy in the US, the company announced in early September that it had secured $785 million of financing to meet ongoing obligations, giving a flicker of hope that it might be able to trade its way out of trouble.

FTSE heavyweights BP and Shell remained among the most sold shares. Alex Campbell, head of communications at trading platform Freetrade, commented: “With record profits coming from oil and gas majors in 2022, we’ve not only seen investors diving in for the dividend income, but many longer term holders have also taken the opportunity to exit positions capturing a capital gain on share prices that are up about 25% over the year.”

In the financial services sector, Barclays and Lloyds were some of the most sold shares with investors cashing in on share price increases over the last few months. Although banks typically benefit from rising interest rates, they have also faced disruption to mortgage products after the government’s mini budget.

South African coal mining company, Thungela Resources, is an interesting addition to the most sold shares. It was spun off from mining giant Anglo American in mid-2021, with its share price increasing from 150 pence to hit a high of over 1800 pence in September.

Freetrade’s Mr Campbell comments: “A particular sweetheart for income-hungry investors this year has been the coal producer, Thungela Resources.

“Not only are the shares still yielding about 19% (as of today’s share price), but the share price has appreciated by nearly 300% in 2022.”

Looking ahead

The level of inflation continues to be a key driver of market uncertainty. The Bank of England forecasts inflation will peak at 11% in October and remain around 10% for the next few months.

As a result, interest rates are also expected to rise with Capital Economics predicting that the base rate will hit 5% by the second quarter of 2023. However, the Bank of England will have to juggle tackling inflation with the risk of triggering a recession.

Overall, macroeconomic issues are likely to drive continued volatility in global stock markets. Concerns include a squeeze in profits if companies are unable to pass on inflationary cost rises to consumers, while rising interest rates will increase the cost of borrowing for consumers and companies alike.

Due to the uncertain outlook, investors may want to consider taking steps to protect their portfolio against a stock market crash, including diversifying into different sectors and asset classes such as bonds, property and commodities.

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances as fees can vary significantly.

Top 10 Most Bought & Sold Shares July 2022

A mini-rally in stock markets brought a much-needed reprieve for investors in July after the sustained downturn in share prices. The FTSE 100 index increased by nearly 4% during July, whilst the harder-hit United States S&P 500 rallied by over 9%.

As a result, July was a quieter month for trading on the London Stock Exchange with a total value traded of £84 billion, the lowest level in the past year. This represents a near 40% drop from March, when the fall-out from the invasion of Ukraine and recessionary fears led to £137 billion of shares changing hands.

So what shares are investors buying and selling? We’ve compiled a list of the top 10 most bought and sold shares by UK investors in July, based on data from AJ Bell, Hargreaves Lansdown, interactive investor and Freetrade.

Please note that investing in individual stocks and in stock market funds is speculative and places your capital at risk. You might lose some, or all, of your money.

UK share trading in July 2022

More positive investor sentiment

July saw a widespread increase in interest rates as the UK, US and Europe battled with soaring inflation. The Fed raised interest rates by 0.75 percentage points in July, with the Bank of England raising the base rate by 0.5 of a percent last week.

The European Central Bank also surprised investors with its first interest rate hike in 11 years, taking the rate to 0% from negative territory.

Rising interest rates typically have a negative impact on stock markets, yet much of this bad news seems to have been priced into shares. There is also a feeling that central banks may temper interest rate rises, although this will be a delicate balancing act given inflation forecasts.

Other positive news came from quarterly earnings announcements during July which Rob Morgan, chief analyst at Charles Stanley, described as “mostly positive for big tech”.

Amazon and Microsoft enjoyed a rise in their respective share prices after positive sales forecasts, while Apple announced record quarterly revenue thanks to iPhone sales.

The FTSE 100 index continues to be more resilient than its more tech-heavy counterparts in the US, falling by only 0.2% so far this year. Its performance has been buoyed by the bumper profits of energy companies such as BP and Shell, along with a higher proportion of more defensive companies in the consumer staples, financial and pharmaceutical sectors.

Richard Hunter, head of markets at interactive investor, commented: “Investors continue to tread carefully, amidst the latest Federal Reserve decision and a barrage of corporate earnings on both sides of the pond in July.

“The UK’s premier index continues to show its mettle compared to many of its global peers and is now up 0.1% despite being up against a host of challenges which, for the moment, show few signs of abating.”

Let’s take a closer look at what we can learn from this list.

What were the most-bought shares?

The bulk of the most-bought shares also feature on the most sold list, with the exception of Legal & General, Rio Tinto and Alphabet. There was also a significant overlap with the most-bought shares in June, with only Easyjet and Aviva being knocked off the list by Amazon and Alphabet.

FTSE 100 heavyweights continued to dominate the most-bought list, with the exception of three US growth stocks (Amazon, Tesla and Alphabet). Blue chip stocks are often seen as ‘safe havens’ during a recession as they operate in more defensive sectors.

Blue chip companies also appeal to income-seekers due to their track record of paying consistent dividends. Lloyds, L&G, BP and Glencore are currently trading on dividend yields of around 4%-7% (being last year’s dividend divided by the current share price).

Mr Morgan pointed to large energy companies such as BP offering “a partial hedge to an extended period of higher prices.” He added that BP’s “second-highest quarterly profit in its history” could help to “keep a healthy level of dividends flowing to shareholders.”

Mining company Rio Tinto continued to be in high demand as its profits have been boosted by high commodity prices. Its current dividend yield of nearly 12% offers an inflation-beating return, while investors may have seen the 7% fall in its share price during July as a good time to buy on the dip.

Mr Morgan said: “While much still rests on supply issues, operating costs and the geopolitical outlook, it is understandable that investors are taking more interest in the space as a potential beneficiary of the rising costs of materials.”

After seeing the share price almost halve in value this year, there was better news for Tesla shareholders in July. Its share price rose by 30% after it announced solid second quarter results. Although its current share price of $860 (£710) remains some way below its year high of $1,243 (£1,027), investors will be hoping that its share price is on an upwards trajectory.

The inclusion of Haleon on the most sold list suggests a muted reaction to GSK’s spin-off of its consumer healthcare business in July, with its share price almost 8% down since the split.

What were the most sold shares?

As with the most-bought shares, the most-sold shares were also principally FTSE heavyweights in the energy, commodities and financial services sectors.

BP and Shell announced bumper quarterly profits in July, thanks to the hike in wholesale fuel prices. The respective rises of 39% and 49% in the share prices of BP and Shell over the last year may have prompted shareholders to realise profits, particularly given the continued debate over the windfall tax.

Shareholders in Lloyds, Rolls Royce and British Airways parent IAG are likely to be nursing significant losses from the last year. However, investors may have taken the bounce in their share prices in July as a good time to sell their shares given the continued challenges ahead.

Mr Morgan commented that Rolls-Royce “is suffering from a combination of post-Covid issues including problematic supply chains and the slow recovery of long haul flights”, with revenue closely linked to flying hours.

He pointed to similar issues for IAG with British Airways cutting 30,000 flights due to “staff shortages as demand for air travel recovers after pandemic restrictions were eased.”

Tesla shareholders may also have taken the opportunity to sell, after its share price hit its highest level since May. There are still clouds ahead for Tesla, due to the production disruption from continued lockdowns in Shanghai, together with the potential impact of a slowdown in consumer spending.

Looking ahead

It remains to be seen whether the bounce in stock markets in July is short-lived or the start of a sustained recovery. However, there is still a high level of uncertainty, with all eyes on the next set of inflation and economic data in the US and UK.

Mr Morgan said: “Overall, sentiment continues to swing between fears of a downturn that will damage corporate profits and hopes that weaker demand will cool inflation and allow central banks to implement less restrictive monetary policy.”

Ryan Lightfoot-Aminoff, senior research analyst at financial advisory firm Chelsea Financial Services, said: “The prospect of a recession later in the year would be a negative for [value] businesses as demand falls. This could lead to the tailwinds coming out of the FTSE 100 before too long.”

Mr Morgan agrees that “there is rising scope for a full blown recession.” However, he believes that “the peak in price rises appears to be close at hand” and an easing of central bank policy would encourage investors to “have more confidence to commit to holding risk assets.”

Investors may want to consider taking steps to protect their portfolio against a stock market crash, including diversifying into different sectors and asset classes.

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances as fees can vary significantly.

Top 10 Most Bought & Sold Shares June 2022

Stock market volatility continues to drive high levels of share trading, with a sustained high volume of trading on the London Stock Exchange since its peak in March, when it hit its highest level in two years.

Some investors are viewing depressed prices as an opportunity to ‘buy on the dip’ while others seem to be taking gains and sitting out until stock markets recover.

Emilie Stevens, analyst at Freetrade, commented: “We were pleased to wave goodbye to June. More record price rises, further rate hikes and creeping recession fears, led to the market throwing another wobbly.”

However, she pointed to investors “being able to think beyond the near-term turbulence and continue to build long-term investment positions.”

So, what shares are investors buying and selling? We’ve compiled a list of the top 10 most bought and sold shares by UK investors in June, based on data from AJ Bell, Hargreaves Lansdown, interactive investor and Freetrade.

Please note that investing in individual stocks and in stock market funds is speculative and places your capital at risk. You might lose all your money.

UK share trading in June 2022

Difficult month

Overall, June was a difficult month for the UK stock market, with the FTSE 100 falling by 5% over the period. The FTSE 250 was hit even harder, dropping by 8%.

Laith Khalaf, head of investment analysis at AJ Bell, points out that, while small and mid-cap shares have struggled in 2022, it comes on the “back of a blistering spell of performance in 2021.”

He adds that, “As investors dial down risk, it’s natural to see them skimp on their exposure to small and midcaps, and this has been exacerbated by inflation taking the shine off the future growth in cash flows that is one of the key attractions of smaller companies.”

Let’s take a closer look at what we can learn from this list.

What were the most bought shares?

The FTSE 100 heavyweights dominated the most bought shares, with only two companies outside this list (easyJet and Tesla).

Blue-chip companies in the FTSE 100 operate in more defensive sectors such as financial services, energy and mining, which are seen as ‘safer’ options in an economic downturn.

Mr Khalaf comments: “UK equity investors can console themselves that the FTSE 100 as an index is only just in the red, having been buoyed by its exposure to old economy sectors like oil, tobacco and defence.”

Many of these FTSE 100 companies also pay high dividends, appealing to investors looking for income as well as share price growth.

Aviva, L&G, Lloyds and BP are currently trading on a dividend yield of between 4-7% (last year’s dividend divided by the current share price). Their share prices have also fallen by between 5-8% over the last month, which investors may see as a buying opportunity.

Mining shares, such as Glencore and Rio Tinto, continue to be in high demand as high commodity prices have driven bumper profits. However, both shares have fallen by around 20% in the last month, due to concerns over the possible impact of lower commodity prices and higher operating costs.

That said, both shares offer attractive dividend yields of 5% and 12% for Glencore and Rio Tinto respectively.

What were the most sold shares?

The majority of the most sold shares also featured on the most bought list, including Tesla, Lloyds, Rolls Royce and BP.

Profit-taking was likely to be a key factor in the companies featuring on the most sold list, with investors keen to take their gains with a possible downturn ahead.

In early June, BP, Glencore, Shell and GSK hit their highest share prices since the pandemic. As a result, shareholders were sitting on one year gains ranging from 15% for BP up to 35% for Shell, thanks to soaring oil and gas prices.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, also highlighted the potential issues facing BP and Shell, including one off expenses from exiting Russian oil operations, the new windfall tax and net zero targets for fossil fuels.

However, she believes the “big risk for Shell and BP going forward is that slowing economies could pull down the price of oil”.

Shareholders in Lloyds, Rolls Royce and British Airways parent IAG have all suffered significant losses over the last three years, with the price of Rolls Royce shares falling by over 70% in this period.

Other than IAG, these shares hit their highest level over the last few months in June, which may have provided an exit opportunity for investors that have lost faith in their recovery stories.

The aviation industry also continues to face turbulence in its efforts to rebuild after the pandemic. Ms Streeter comments: “The post-pandemic travel boom has created a welcome tailwind, but many airlines have not been able to fully capitalise on it because they aren’t able to expand capacity fast enough.”

Tesla deserves a separate mention as a long-term occupant of the most bought and sold lists. Having been one of the most highly valued US growth stocks in the last bull market, its fortunes have since reversed, with a 45% fall in share price since 2021.

Tesla’s share price has also been heavily impacted by Elon Musk’s bid for Twitter, which has been a long-running saga since he first made his offer to buy the social media platform in April.

Although his latest refinancing removed his Tesla shares as security against loans, doubts remain about his future role at Tesla if the Twitter deal makes it across the finish line.

But that’s not the only issue facing Tesla, who recently reported a serious dent in deliveries due to the lockdowns in Shanghai. Ms Stevens comments: “For all Elon’s superpowers, Tesla is not immune to the supply chain challenges facing the world and we’ll find out how well they are equipped to deal with this later this month.”

While Ms Streeter also warns about the impact of high inflation and the cost of living crisis on electric car sales, stating that: “For now Tesla fans seem prepared to wait for coveted models, but affordability is still part of the equation.”

Looking ahead

The investment outlook continues to look uncertain, thanks to rising inflation, interest rates and an uncertain political climate, domestically and globally.

Fears of a recession ahead have prompted investors to take steps to protect their portfolio against a stock market crash.

Ms Streeter says: “Investors sense there is trouble ahead for the global economy, given that the priority of the powerful US Federal Reserve is to stamp out the flames of inflation even if that means extinguishing growth, causing ripple effects around the world.”

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances.

Remember that when investing, your capital is at risk. Investments can go down as well as up, and you may not get your money back. If you are unsure as to the best option for your individual circumstances, you should seek financial advice.

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Top 10 Most Bought And Sold Shares In July 2023

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