Top 10 Most Bought And Sold Shares In June

Stock market volatility continues to drive high levels of share trading, with a sustained high volume of trading on the London Stock Exchange since its peak in March, when it hit its highest level in two years. 

Some investors are viewing depressed prices as an opportunity to ‘buy on the dip’ while others seem to be taking gains and sitting out until stock markets recover.

Emilie Stevens, analyst at Freetrade, commented: “We were pleased to wave goodbye to June. More record price rises, further rate hikes and creeping recession fears, led to the market throwing another wobbly.” 

However, she pointed to investors “being able to think beyond the near-term turbulence and continue to build long-term investment positions.”

So, what shares are investors buying and selling? We’ve compiled a list of the top 10 most bought and sold shares by UK investors in June, based on data from AJ Bell, Hargreaves Lansdown, interactive investor and Freetrade.

Please note that investing in individual stocks and in stock market funds is speculative and places your capital at risk. You might lose all your money.

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UK share trading in June 2022

Difficult month

Overall, June was a difficult month for the UK stock market, with the FTSE 100 falling by 5% over the period. The FTSE 250 was hit even harder, dropping by 8%. 

Laith Khalaf, head of investment analysis at AJ Bell, points out that, while small and mid-cap shares have struggled in 2022, it comes on the “back of a blistering spell of performance in 2021.” 

He adds that, “As investors dial down risk, it’s natural to see them skimp on their exposure to small and midcaps, and this has been exacerbated by inflation taking the shine off the future growth in cash flows that is one of the key attractions of smaller companies.”

Let’s take a closer look at what we can learn from this list.

What were the most bought shares?

The FTSE 100 heavyweights dominated the most bought shares, with only two companies outside this list (easyJet and Tesla). 

Blue-chip companies in the FTSE 100 operate in more defensive sectors such as financial services, energy and mining, which are seen as ‘safer’ options in an economic downturn.

Mr Khalaf comments: “UK equity investors can console themselves that the FTSE 100 as an index is only just in the red, having been buoyed by its exposure to old economy sectors like oil, tobacco and defence.”

Many of these FTSE 100 companies also pay high dividends, appealing to investors looking for income as well as share price growth. 

Aviva, L&G, Lloyds and BP are currently trading on a dividend yield of between 4-7% (last year’s dividend divided by the current share price). Their share prices have also fallen by between 5-8% over the last month, which investors may see as a buying opportunity.

Mining shares, such as Glencore and Rio Tinto, continue to be in high demand as high commodity prices have driven bumper profits. However, both shares have fallen by around 20% in the last month, due to concerns over the possible impact of lower commodity prices and higher operating costs. 

That said, both shares offer attractive dividend yields of 5% and 12% for Glencore and Rio Tinto respectively. 

What were the most sold shares?

The majority of the most sold shares also featured on the most bought list, including Tesla, Lloyds, Rolls Royce and BP. 

Profit-taking was likely to be a key factor in the companies featuring on the most sold list, with investors keen to take their gains with a possible downturn ahead. 

In early June, BP, Glencore, Shell and GSK hit their highest share prices since the pandemic. As a result, shareholders were sitting on one year gains ranging from 15% for BP up to 35% for Shell, thanks to soaring oil and gas prices.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, also highlighted the potential issues facing BP and Shell, including one off expenses from exiting Russian oil operations, the new windfall tax and net zero targets for fossil fuels. 

However, she believes the “big risk for Shell and BP going forward is that slowing economies could pull down the price of oil”.

Shareholders in Lloyds, Rolls Royce and British Airways parent IAG have all suffered significant losses over the last three years, with the price of Rolls Royce shares falling by over 70% in this period. 

Other than IAG, these shares hit their highest level over the last few months in June, which may have provided an exit opportunity for investors that have lost faith in their recovery stories.

The aviation industry also continues to face turbulence in its efforts to rebuild after the pandemic. Ms Streeter comments: “The post-pandemic travel boom has created a welcome tailwind, but many airlines have not been able to fully capitalise on it because they aren’t able to expand capacity fast enough.”

Tesla deserves a separate mention as a long-term occupant of the most bought and sold lists. Having been one of the most highly valued US growth stocks in the last bull market, its fortunes have since reversed, with a 45% fall in share price since 2021. 

Tesla’s share price has also been heavily impacted by Elon Musk’s bid for Twitter, which has been a long-running saga since he first made his offer to buy the social media platform in April. 

Although his latest refinancing removed his Tesla shares as security against loans, doubts remain about his future role at Tesla if the Twitter deal makes it across the finish line.

But that’s not the only issue facing Tesla, who recently reported a serious dent in deliveries due to the lockdowns in Shanghai. Ms Stevens comments: “For all Elon’s superpowers, Tesla is not immune to the supply chain challenges facing the world and we’ll find out how well they are equipped to deal with this later this month.”

While Ms Streeter also warns about the impact of high inflation and the cost of living crisis on electric car sales, stating that: “For now Tesla fans seem prepared to wait for coveted models, but affordability is still part of the equation.”

Looking ahead

The investment outlook continues to look uncertain, thanks to rising inflation, interest rates and an uncertain political climate, domestically and globally. 

Fears of a recession ahead have prompted investors to take steps to protect their portfolio against a stock market crash. 

Ms Streeter says: “Investors sense there is trouble ahead for the global economy, given that the priority of the powerful US Federal Reserve is to stamp out the flames of inflation even if that means extinguishing growth, causing ripple effects around the world.”

If you’re looking to trade in shares, it’s also worth taking the time to choose the best trading platform for your individual circumstances.

Remember that when investing, your capital is at risk. Investments can go down as well as up, and you may not get your money back. If you are unsure as to the best option for your individual circumstances, you should seek financial advice.