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.
Most popular shares in February 2023
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?
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
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.
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.
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.
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.
Most popular shares in December 2022
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.
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.
Most popular shares in November 2022
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.
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.
Most popular shares in October 2022
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.”
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 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.
