Jo Groves
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Updated 13 Oct 2024
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This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.

In the second of our new monthly series, we shine a spotlight on the shares topping the buy and sell lists of UK retail investors in September.

After a bright and breezy August, the leading US and UK equity indices largely flat-lined in September on a mixed bag of news. The Fed finally delivered its long-awaited cut in US interest rates but concerns over an economic slowdown and ballooning budget deficit continued to linger. Elsewhere, Chinese equities headed upwards on the back of a cornucopia of economic stimulus measures, while Japanese equities took a dive on news of a new prime minister. Much for UK investors to ponder…

Meanwhile, speculation about changes to capital gains tax and pension relief in the upcoming Autumn Budget helped to fire trading values to a three-month high, with £92 billion of shares changing hands on the London Stock Exchange last month. Let’s take a closer look at which companies made the cut and which were cast asunder.

Top 10 most bought and sold shares in September

There was a distinctly UK flavour to the most bought list for the second month running, with NVIDIA (NVDA) being the only Magnificent Seven company to make the cut, though it slipped from pole position to mid-table. Investors capitalised on a 10% dip in the chipmaker’s share price in early September, clearly backing NVIDIA to preserve its impressive market share despite news of a potential antitrust probe by US regulators.

With base rates falling on both sides of the pond, UK blue-chips remain a perennial favourite with income-seekers, with L&G (LGEN) and HSBC (HSBA) heading up the group on current dividend yields of 9% and 7% respectively. BP (BP) took first place on the most bought list, with its dip in share price to a 12-month low prompting somewhat of a buying frenzy.

Aston Martin (AML) was a surprise entry at number two, with investors pouncing after shares in James Bond’s favourite car manufacturer nosedived by more than a third on its latest profits warning. This heaped further misery on longer-term investors who will no doubt be shaken not stirred by an eye-watering 97% fall in its share price since making its stock market debut in 2018.

The company was forced to downgrade full-year guidance due to weak demand from China and supply chain issues, while question marks remain over its liquidity. Given that the luxury car-maker has racked up seven bankruptcies in its 100-year history, investors will be crossing their fingers that its slew of new product launches will please the City (if not Q…).

Finally, AIM-listed miner Helium One (HE1) climbed up to bronze position in September, having made its debut in fourth place last month. Investors continued to endure (or enjoy, depending on your perspective) a white-knuckle ride with its share price falling by more than a third in the month but remaining up by more than 300% in 2024.

The sell list was almost a mirror image of the previous month, with Solidcore Resources (CORE) moving up one place to take top honours. The rebranded Polymetal International continues to grapple with the sale of its Russian mining assets and investors seemingly viewed the 10% bounce in share price on half-year results as an opportune time to exit.

Meanwhile, some investors ditched BP (BP) and Shell (SHEL) as their share prices went the same way as falling oil prices due to mounting concerns over increased oil production in parts of the Middle East. Both companies have also faced scrutiny over the perceived watering down of their sustainability commitments as the world transitions from fossil fuels to green energy.

Top 5 most bought investment trusts in September

Scottish Mortgage (SMT) held onto top honours as the most bought trust in September. The FTSE-100 listed trust remains a popular choice for investors seeking Magnificent Seven exposure, delivering a stellar 12% increase in NAV in the last month.

Josef Licsauer, analyst at Kepler Trust Intelligence, comments: “Investors had raised questions over the valuation of SMT’s unlisted portfolio but the trust’s exposure has fallen from close to its ceiling in 2023 to around 24% this year, on the back of the successful IPO of Tempus AI and strong performance in its public holdings.

“Added to this, its share buyback programme continues apace, with SMT having bought back one billion shares since March and executing the largest single-day buyback by a UK investment company of 311m in May 2024. While its discount has widened slightly in recent months, it remains significantly narrower than its 20%-plus discount in mid-2023.”

BlackRock World Mining (BRWM) soared into the charts but was narrowly pipped to the post for first place. After a challenging few months, BRWM has chalked up a 13% increase in NAV in the last month, helped in part by gold prices rising due to conflict in the Middle East, alongside a juicy dividend yield of more than 6%. The trust holds significant positions in large-cap miners Rio Tinto, Glencore and BHP which should benefit from the large increase in demand for commodities to meet net zero commitments.

The other three trusts, Greencoat UK Wind (UKW)JPMorgan Global Growth & Income (JGGI) and Alliance Trust (ATST) continued to curry favour with UK investors. Both JGGI and ATST have ticked up nicely in the last month, while investors took the opportunity to lock in the chunky 7% dividend yield on the slight dip in UKW.

And that brings the curtain down on trading in September. Uncertainty remains firmly on the menu, with investors hoping for a more positive UK GDP print for August and nervousness is starting to build over possible changes to tax relief in the Autumn Budget. On the other side of the Atlantic, all eyes will be on the next round of corporate earnings with companies facing mounting pressure to justify the lofty valuations of the S&P 500. It’s shaping up to be an interesting (if slightly stressful) month…

All data as at 08/10/2024 unless stated otherwise.

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