THE The five most actively traded stocks on the Fidelity platform in June are a true reflection of our times – with the travel and oil and gas sectors dominating the top five spots.
BP (BP.) A perennial favorite and always a winner with the Dividend Hunters occupies the number one position. Rival Shell (SHEL) ranks fifth in our list of the most actively traded stocks in June.
It is not surprising that these two oil majors dominate. We’ve all seen the prices at the pump and the easiest way for investors to gain exposure to rising oil and gas prices is to invest in the stocks of the largest oil and gas producers.
And with many analysts expecting oil and gas prices to remain high, both should generate bumper profits for the rest of the year. The promise to return much of those profits to shareholders via dividends and buybacks is the icing on the cake for investors who have already seen Shell shares rise 170% in the past 20 months. Remember that past performance is not a reliable indicator of future returns.
After a deadly coronavirus pandemic, when demand for oil collapsed and oil majors’ shares fell to their lowest level in 27 years, they have made a sure – and very profitable – comeback this year.
The other sector that ranks in the top five is travel, specifically air travel. Budget carrier easyJet (EZJ) was the second most actively traded stock by Fidelity investors in June. Perhaps as a result of the triumph of hope over reality, however. Because so far, rather than reveling in the first summer of freedom (after the pandemic shutdowns), the airline has been one of the airlines to have left vacationers’ summer travel plans in tatters because it was forced to cut thousands of flights this summer in response to staff shortages. And a general inability to cope with increased post-pandemic demand.
EasyJet did not reveal exactly how many flights were cancelled, but said it would now fly around 87% of 2019 levels in the three months to the end of June, compared to an expected 90% in May. He said in the next quarter this would increase to 90%, up from a previous expectation of 97%, which equates to 160,000 flights.
Perhaps investors listened to Willie Walsh, former head of British Airways and now chief executive of the International Air Transport Association, who insisted that an industry-wide return to profitability in 2023 was “within reach”. “Airlines are resilient. More and more people are flying… profitability is looming by 2023. Now is the time to be optimistic,” he said.
EasyJet is due to release its third quarter commercial update on July 26.
The 5 Most Traded Stocks in June
2. Easy Jet
Source: Fidelity Brokerage (data from June 1 to June 30, 2022)
Five years p performance
As of June 30
Past performance is not a reliable indicator of future returns
Source: FE from 30.6.17 to 30.6.22 Basis: Total returns in GBP. Excludes upfront costs.