IMPORTANT ANNOUNCEMENT: MyWalletHero is becoming The Motley Fool UK - click here to read more about our name change.

Why have traders been boosting the Costain Group share price?

Why have traders been boosting the Costain Group share price?
Image source: Getty Images

Data from Fineco, a European bank and trading platform, shows that September 2021 was a very good month for some companies. The Costain share price saw one of its best weeks ever, but companies like Pfizer and Marks & Spencer also benefited from restructuring programs and the COVID-19 vaccine being granted full FDA approval.

For investors avidly following the market, these changes are examples of how fast the market can turn and why a long-term investment strategy makes the most sense. 

What pushed the Costain share price to the top of the UK movers’ list?

The Costain Group is one of the UK’s leading smart construction and engineering companies. In March last year, the company’s share price plunged by 80% after announcing it would issue £100 million of new shares to offset 2019 losses.

Things are looking better this year, as Costain Group is now at 80% volume buy and 20% volume sell. This comes after the announcement that profits are up £9.1 million from a £92.3 million loss just one year ago. Recent comments from the company haven’t hurt either. It expects to benefit from the government’s commitment to investing in infrastructure in the coming years. 

This confirms Costain CEO Alex Vaughan’s announcement that the company had “good visibility on the completion of contracts for the remainder of this year, which gives us confidence in delivering full-year results in line with our expectations”.

Was September a good month for the market?

September was a month of ups and downs. The Bank of England’s Monetary Policy Committee has just released new monetary policies to meet the 2% inflation target in an effort to sustain growth and employment. 

Part of those measures is the confirmation that it will maintain the base interest rate unchanged at 0.1%. The bank will also continue with its existing programme of UK government bond purchases. 

Is the Costain share price increase a sign of things to come?

With inflation expected to rise further in the near term and the pace of financial recovery showing signs of slowing down, things seem to be a bit up in the air. With the interest rate now remaining at 0.1%, this could be the perfect opportunity to look at other options.

A stocks and shares ISA might be a better place to park your money because of its tax-free benefits. But dipping your toes in the water with some stocks and shares is not a bad idea either. September is a month with historically lower returns, but there’s hope that the market will recover in October. 

Wells Fargo’s behaviour in September is a good example of this. Wells Fargo was a top mover globally in September with 64% volume buy and 36% volume sell. The high buy numbers correspond with the announcement of possible additional sanctions against the company. This comes from being too slow to compensate victims and address deficiencies in its business practices.

As a result of this, prices have gone down and people have hurried to buy shares, as they’re expected to eventually go up again as the market recovers. 

Rated 5 stars out of 5 by The Motley Fool UK

Trade UK shares for just £2.95 and US shares for just $3.95 — with no platform fee!

The FinecoBank* Multi-Currency Trading Account offers UK investors highly competitive share-dealing rates across 26 global markets. Open your account using promo code TRD500-ML and during your first 3 months you can trade without incurring commission charges – up to a total commission amount of £500. (Terms and conditions apply.)

*Affiliate Partner. Important information and risk disclaimer: The value of shares and any income produced can fall as well as rise, and you may get back less than you invest. Exchange rate fluctuations can reduce the sterling value of any overseas holdings.

Was this article helpful?

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.