Saxo Markets has revealed the most popular London-listed stocks among its UK clients for the month of October. So which are the stocks that investors showed a great appetite for last month? And what might trading activity look like in the month of November?
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Which stocks were most popular in October?
According to Saxo Markets, oil and gas firm BP was the most popular LSE stock in the month of October based on the number of individual investors.
In second place was metals and mining corporation Rio Tinto, and another oil and gas company, Royal Dutch Shell, claimed the third spot. Pantheon Resources and Petra Diamonds completed the list of the top five companies.
Commodities dominate the list of October’s most popular stocks. In fact, six of the top ten most popular stocks were from the commodities category, with Vodafone being the highest-ranking entry from the service sector in sixth position.
Only one bank, Lloyds Banking Group, made the top ten.
Here is the full list of the top 10 most popular stocks in October.
|
Position |
Stock |
|
1 |
BP |
|
2 |
Rio Tinto |
|
3 |
Royal Dutch Shell |
|
4 |
Pantheon Resources |
|
5 |
Petra Diamonds |
|
6 |
Vodafone |
|
7 |
Glencore |
|
8 |
Rolls-Royce |
|
9 |
Lloyds Banking Group |
|
10 |
GlaxoSmithKline |
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What could November have in store?
November could prove to be an interesting month for the markets.
Mike Owens, global sales trader at Saxo Markets, says that investors will be keeping a close eye on any key commitments coming out of the COP26 Climate Conference that “may prove to be game-changing for themes such as clean energy, renewables, decarbonisation and green infrastructure transformation”.
For example, developments at COP26 could have a big impact on oil companies such as BP and Royal Dutch Shell, which would have a knock-on effect on investors’ appetites for their stocks.
Aside from the COP26 conference, another factor that may have an impact on trading activity in November is monetary policy. According to Owens, this month, major central banks are planning to start pulling back on some of the stimulus measures put in place during the Covid-19 pandemic.
He explains, “We could see more activity in the big UK banks such as HSBC, Barclays, NatWest and Lloyds as they are set to benefit from a higher interest rate environment.”
What else do investors need to know?
Generally, it’s always a good idea to keep an eye on what other investors are buying and selling.
Your investment decisions should not, however, be solely guided by what other investors are doing. The most important thing you can do to increase your odds of success and mitigate risk is to craft an investing strategy that is tailored to your goals and circumstances. For more on this, check out our guide on how to create your own strategy.
If you are looking to invest as tax-efficiently as possible, then you may want to invest through a stocks and shares ISA such as the Saxo Markets Stocks and Shares ISA. This is essentially a tax wrapper that can be put around a wide range of investments to shield them from tax.
Just remember that when it comes to investing, nothing is guaranteed. The value of your investments can go up as well as down, and it’s possible to end up with less than you put in. So, analyse your investments carefully to determine their long-term potential before you put your money into them.
