5 FTSE Shares You Should Have Bought In June

Lloyds Banking Group (LON: LLOY), RSA Insurance Group (LON: RSA) and British Sky Broadcasting (LON: BSY) all put in a positive month.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

June saw the FTSE 100 put in a losing month for the first time in a year, with the index of top UK stocks dropping 368 points (5.6%) to end the month on 6,215 — and that’s quite a way back from the 13-year high of 6,876 points it set on 22 May.

Of course, in a month like that, there aren’t usually many top-flight shares rising — although across the various indices there was some interesting progress. Today we’ll take a look at five companies, including two from outside the FSTE 100, which ended June on a rise and which look like they might be good long-term prospects:


Optimism appears to be picking up for the bailed-out Lloyds Banking Group (LSE: LLOY), whose shares gained a modest 1p to close the month on 63p. That’s not much of a gain, but with confidence returning as the government moves closer to selling off the taxpayers’ stake, there may well be more significant gains to come.

The Lloyds price has doubled over the past 12 months, but the bank really is only just getting back into the black, with a pre-tax profit of around £3bn currently being forecast for the year to December 2013. That does put the shares on a price-to-earnings (P/E) ratio of 14, which is high for the sector, but it falls to under 11 on 2014 estimates.

And dividends should start getting back up next year, with a 2014 yield of 2.3% being forecast.


There’s a bit of life returning to the insurance sector, too, with shares in RSA Insurance Group (LSE: RSA) having also made a small gain during June. The price is up only 4p to 119p, but that puts the shares on a P/E based on this year’s forecasts of under 10 — and long-term, that looks like it could be a bargain rating to me.

The firm’s first-quarter update, released in May, told us of an “encouraging start” to the year, with premiums up 7% and net asset value up 5%. RSA has come off a few tough years, with 2011 the only one of the past five in which it managed to grow its earnings per share (EPS). But we now have two years of EPS growth forecast, with dividend yields of nearly 6% expected.

British Sky Broadcasting

The British Sky Broadcasting (LSE: BSY) share price has been tumbling since March, but it was one of the few in the FTSE top flight to gain during June — up 12p to 792p. The price has been hit by a move by BT to provide free sports channels to BT Broadband customers, but it does look like it could be a bit overdone to me.

BSkyB has enjoyed double-digit rises in EPS for three years in a row, and there’s another 13% expected for the year to June 2013 — we should have the results on 26 July. And there’s a dividend yield of around 3.6% expected.

With the shares on a forward P/E of 17, falling to 13 for next year, is this a good opportunity to bag a mix of growth and income? That’s for you to decide.

Quindell Portfolio

We’ll move to a smaller company now, the £450m AIM-listed Quindell Portfolio (LSE: QPP). Quindell provides software and related services to a number of industries, including insurance and telecoms, which doesn’t sound too controversial.

But the share price slumped in May, prompting the company to issue a statement denying rumours that it was facing a threat from short-selling. Since then, the price has recovered, gaining 3p during June — that might not sound a lot, but it’s a 35% rise to 11.5p.

The firm also closed June by telling us that the past three months have brought in “multiple significant new contract wins”.


IGas Energy (LSE: IGAS) is even smaller than Quindell, with a market cap of just half the value. But it had a great month, with its shares soaring by 26.5p (28%) to end June on 119.5p. The reason? A massive upgrade in the company’s estimated reserves of shale gas.

IGas has licences covering 300 square kilometres across the Northwest of England, and had previously been estimating total reserves of around nine trillion cubic feet. That has now been upped to somewhere between 15 and 172 trillion cubic feet, with a most-likely figure settling on around 100 trillion.

How much of that turns out to be commercially viable remains to be seen, and it’s typically only a small percentage, but we could be looking at a nice growth prospect here.

Finally, if you’re looking for top quality investments in the UK’s biggest and best companies, which should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits.

But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

> Alan does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Up 75% in 5 years, I reckon this FTSE 250 still has lots to give!

Our writer explains why this FTSE 250 stock could still continue to provide growth and returns despite already being on…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

2 high-quality FTSE 250 stocks to consider buying

The FTSE 250 is home to some of the best investment opportunities out there. This Fool highlights two stocks for…

Read more »

Investing Articles

The Marks and Spencer share price dips! Is this my chance to buy?

Marks and Spencer was one of the hottest stocks on the market last year. With its share price falling in…

Read more »

Growth Shares

How low could the boohoo share price go?

Jon Smith explains why the enterprise value and the low risk of bankruptcy should help to prevent the boohoo share…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Down 23% in a year! Can the Diageo share price regain £30 in 2024?

This Fool UK writer is checking the charts to see if the Diageo share price can recover from the recent…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Investing Articles

I wouldn’t touch this FTSE 100 stalwart with a bargepole

Despite looking like a bargain on paper, this Fool is avoiding FTSE 100 constituent Vodafone at all costs. Here he…

Read more »

Investing Articles

I’m waiting for the Rolls-Royce share price to pull back before I buy

The Rolls-Royce share price has been the Footsie's best performer in the last year. But this Fool has no intention…

Read more »

Front view photo of a woman using digital tablet in London
Dividend Shares

2 dividend stocks to take me from £0 to £9.5k in second income

Jon Smith talks through some ideas with second income potential, including one stock that has a dividend yield above 10%…

Read more »