Last week, we saw some interesting movements of shares as interest rates rose and restrictions further tightened due to the Omicron variant. With everything that’s happening in the world right now, it’s useful to see how events impact the buying decisions of investors.
To give you a peek behind the curtain, I’m going to reveal the most popular stocks on the Hargreaves Lansdown investing platform last week and give you some investment tips to carry with you into Christmas.
What’s going on with shares in the markets right now?
Last week, we saw the Bank of England raise interest rates from 0.1% to 0.25%. Part of the motivation behind this was perhaps to show that the bank is doing something to try and slow inflation.
But realistically, such a small rate hike isn’t going to make much difference to the high prices we’re seeing. Raising interest rates by just a smidge is not going to affect soaring energy prices or high car values.
However, seeing interest rates move up somewhat faster than expected does shake up the investing landscape. As a result of this move, there’s been a continued sell-off in some tech stocks. We’ve also seen travel restrictions continue to tighten, which is bad news for both the travel industry and hospitality.
Let’s take a look at how all this news has been affecting the buying decisions of investors and see if there have been any big shifts in focus.
What were the most popular shares for UK investors last week?
Here are the ten most bought shares on the Hargreaves Lansdown platform last week:
|1||Lloyds Banking Group (LLOY)|
|2||iShares Core FTSE 100 UCITS ETF (ISF)|
|3||Boohoo Group (BOO)|
|5||Scottish Mortgage Investment Trust (SMT)|
|7||International Consolidated Airlines Group (IAG)|
|8||Rolls-Royce Holdings (RR)|
|9||Cineworld Group (CINE)|
|10||BT Group (BT.A)|
What does this selection of shares tell us about UK investors?
The most poignant thing about this bunch of shares is that it’s not too dissimilar a selection from last week’s top stocks.
This tells us that investors are in a similar frame of mind, and even with the coronavirus pandemic situation worsening and interest rates rising, most are sticking to their guns.
A number of companies on this list have been hit by the issues mentioned above, but investors are banking on these problems being temporary. The hope is that many of these stocks and shares are poised to bounce back with a vengeance once normality resumes in both the economy and supply chains.
Cineworld (CINE) is an interesting pick because the share price tanked last week. This was following an announcement that they could have to pay a whopping £700 million in damages to Canadian group Cineplex. Many investors were selling these shares, but there were plenty of buyers ready to snap them up at a cheaper price.
Is there anything investors should look out for in the coming week?
The Christmas period has historically been a pretty swell time for stocks and shares. However, past performance is not an indicator that this year will fare well for equities.
Unless there are massive changes to Covid-19 restrictions, I can see the current trends continuing. Tech stocks may get a little cheaper, which could mean people stop moaning about high valuations.
I also think that travel- and hospitality-related businesses will remain muted until at least the new year when things could loosen up again.
What else should investors be aware of?
It’s impossible for you to control what happens with the wider economy or Covid-19. But you can decide some of your investing fate. One of the biggest things you can be in charge of is where you invest.
By choosing a top-rated share dealing platform with low fees, you can maximise the gains you make with your investments. It’s also a good idea to be a smart investor and use an account like the Hargreaves Lansdown Stocks and Shares ISA in order to reduce how much tax you pay.
Any type of investing carries a certain level of risk. So keep in mind that you may get out less than you put in. If you need to go over some market basics, make sure you check out our complete guide to share dealing for a refresher.
The post Here are the most popular shares for UK investors last week! appeared first on The Motley Fool UK.
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