2 top FTSE 100 shares to buy in September!

Andrew Woods sets out his two favourite FTSE 100 shares to buy next month, because of profitability and broader economic factors.

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With September just around the corner, I’ve been on the lookout for the best FTSE 100 shares to buy. Having trawled through the index, I think I’ve identified two exciting opportunities to add to my long-term portfolio. Let’s take a closer look.

Consistent profits

First, Antofagasta’s (LSE:ANTO) share price has been volatile in recent months. In the past three months, it’s down 21% and currently trades at 1,167p.

The Chile-based copper mining firm has been consistently profitable over the last five years, registering a pre-tax profit of $3.4bn for 2021.

YearPre-tax profit
2017$1.8bn
2018$1.2bn
2019$1.3bn
2020$1.4bn
2021$3.4bn

It’s important to note, though, that this growth is not guaranteed in the future.

Furthermore, with its results for the six months to 30 June, the company reiterated its production guidance for 2022 of between 640,000 and 660,000 tonnes of copper. 

However, during this period revenue fell by around 30% to $2.5bn. In addition, core earnings declined by about 50% to $1.2bn.

Much of the fall can be attributed to a drop in the copper price, in line with other commodities. Also, a drought in Chile has negatively impacted mining operations as water is essential for these. 

It’s opening a desalination plant in the second half of this year, and this should greatly help the business to pick up production. 

In the long run, demand for copper could increase significantly because it’s an essential component in many products, including electric vehicles.

Banking on higher interest rates

Second, shares in Standard Chartered (LSE:STAN) are down about 6.25% in the last three months. At the time of writing, they’re trading at 588p.

The banking firm has been benefiting from rising interest rates. These are currently set at 1.75% in the UK. With inflation above 10%, it’s very likely that interest rates will move higher.

This is generally good news for the likes of Standard Chartered because it may be able to charge more for borrowing services. 

But it’s also worth noting that higher rates could be negative. With the cost-of-living crisis, potential customers may be put off taking on debt at more expensive levels. 

In its results for the six months to 30 June, however, the business reported that pre-tax profit was up 7% to $2.8bn. 

Furthermore, it announced that it’s embarking on a $500m share buyback scheme. It’s also paying an interim dividend of ¢4 per share. While this company may provide growth, it’s good to know that I could possibly derive income from the investment too.

Overall, these businesses may provide good opportunities if bought next month. While they face challenges, they’re both profitable and stable. To that end, I’ll add both firms to my portfolio next month and hold them for the long term. 

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.

Andrew Woods has no position in any of the shares mentioned. The Motley Fool UK has recommended Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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