Last week was another rather strange week in the markets, and lots of shares suffered due to an atmosphere of fear. Many stocks lost value through no real fault of their own, but that’s just how it goes sometimes!
If you want to know which shares were bought and sold during all the recent turbulence, read on for the latest scoop, along with where I think markets will be heading next.
Why was the stock market rattled?
There’s a lingering sense of doom from the coronavirus pandemic that just won’t go away. News of the Omnicron variant has led to a tightening of travel restrictions for some countries, putting Covid-19 right back at the centre of everything.
Lots of the steps being taken are precautionary, but after the mess that was Christmas 2020, markets have been bracing themselves for the worst. Along with festering variant troubles, there’s a lot of international social issues still surrounding the topic of vaccines.
Along with all this, there are still background fears about the Chinese economy and problems relating to Evergrande debt. The company owes a whopping amount and appears to be teetering on a knife-edge. If not managed properly, this debt crisis in China could have far-reaching effects.
What were the most bought shares by UK investors?
These were the shares that were most bought by investors on the Hargreaves Lansdown platform last week:
1. iShares Core FTSE 100 UCITS ETF (ISF)
This index fund focuses on the FTSE 100 and pays out dividends rather than reinvesting them. So it’s a popular choice for investors looking to get a regular income.
2. Scottish Mortgage Investment Trust (SMT)
Always a favourite, this is one of the biggest and best investment trusts available. It has a long-term focus on tech growth stocks and many investors have used this market lull to load up on shares.
3. Tesla Inc (TSLA)
The popularity of this EV (electric vehicle) stock shows no signs of waning. After a huge recent increase in value, some investors are exploiting the short-term uncertainty by filling up their bags with this monster stock.
What were the most sold shares by UK investors?
Here are the shares that saw the most selling action:
1. iShares Core FTSE 100 UCITS ETF (ISF)
One man’s trash is another man’s treasure. Although this fund saw a large number of buys, there were also lots of investors selling shares. Some investors are worried about the UK’s immediate financial outlook.
2. Tesla Inc (TSLA)
Similarly, although lots of investors were jumping on discount Tesla stock, many were selling their shares. High-growth tech stocks are usually the first things people sell in a market dip, opting instead for more stable cash-generating options.
3. Vanguard Funds FTSE 100 UCITS ETF (VUKE)
This is another FTSE 100 index fund that lots of investors have been selling. There’s a lot of change happening in the UK right now. Some investors fear that the biggest UK companies are out of fashion and won’t keep up with hot global stocks.
What could be next for stock markets?
A lot of the recent worries are about the unknowns – and the stock market hates uncertainty! I don’t think any of the issues going on right now will remain unresolved. But sorting everything out could take a while.
Once there’s a clearer picture of some of the big issues, the stock market will return to business as usual. That said, the current situation probably won’t be fixed during the next week.
The market hesitation does provide a decent buying opportunity for investors. Lots of analysts shared beliefs that certain markets and stocks were valued too highly. This recent dip means you can buy shares at better prices than a few weeks ago! When it comes to investing, it’s also worth using something like the Hargreaves Lansdown Stocks and Shares ISA account if you want to protect any gains from tax.
If you’re just getting started with investing, we’ve got a complete guide to share dealing to point you in the right direction. Just keep in mind that when it comes to investing, there are no guarantees, and you may get out less than you put in.
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About the author
George is a writer and qualified financial adviser focused on educating others in personal finance & investing.
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