These UK share prices are rising strongly! Here’s why

These UK shares are all shooting higher after updating the market on Tuesday. Here are the key things investors like me need to know.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

These UK share prices have leapt in value over the past 12 months. And they are rising strongly in Tuesday business too. Here’s why investors are piling in again.

Strong trading

Frenkel Topping Group (LSE: FEN) is enjoying strong gains on Tuesday following the release of fresh trading news. Up 4% on the day, the financial advice firm is now 19% more expensive than it was at this point last June.

Frenkel has continued to trade robustly in the year to date and chief executive Richard Fraser said the UK financial share has enjoyed “strong organic growth” in the first five months of 2021. Acquisitions have also been performing well, he added, while the business has kept winning assets under management (AUM) mandates in the period.

AUM was up 6% on 30 April from four months earlier, at £1.07bn, due to “net inflows and encouraging levels of new business wins.”

Private investor buying UK shares at home

Building its international footprint

The Grafton Group Units (LSE: GFTU) share price has also risen strongly today, taking gains over the past 12 months to an impressive 82%. It’s up by mid-single-digit percentages in Tuesday business.

The builders’ merchant has soared, thanks to the sunny outlook for the British and Irish construction sectors. Fresh acquisition news on Tuesday has helped the UK retail share gain even more ground.

Grafton will pay €199.3m to pick up Scandinavian peer IKH in a deal that’s expected to complete in July. It described IKH as “one of the largest workwear and personal protective equipment (“PPE”), tools, spare parts and accessories technical wholesalers and distributors in Finland.”

Grafton chief executive Gavin Slark also that the move “[will] strengthen the group’s operations in the mainland European market in line with our international development strategy.

Another busy UK share making M&A moves

National Express Group’s (LSE: NEX) share price is also rising on Tuesday following an acquisition announcement of its own. Up 2% on the day, the coach and bus operator has now risen 20% in value over the last 12 months.

The UK transport share has been heading southwards in recent weeks on government plans to delay lifting Covid-19 restrictions. But news today that it’s to acquire Transportes Rober in Spain for €13m has helped lift investor mood. National Express already operates in the country through its ALSA division.

National Express said the takeover “represents a further step in consolidating the regional and urban bus markets, a strategy which ALSA has successfully executed in Galicia, the Basque Region and Leon among others.”  Transportes Rober has operated the urban bus contract in Granada for more than 20 years.

National Express also announced today that its trading performance across the group continues to improve and is slightly ahead of management expectations. It added: “We have continued to win new contractsnotably in corporate shuttle both in North America and the UK.”

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Is now the time to buy BP shares? Here’s what the charts say

The best time to buy shares in a company is when they’re trading at a discount. But the future is…

Read more »

Investing Articles

Here’s how I’d use £50K to aim for a million when the stock market crashes

Seeing a stock market crash as a buying opportunity could prove lucrative for a well-prepared, long-term investor. Christopher Ruane explains…

Read more »

Stack of one pound coins falling over
Investing Articles

It’s up 27% with a P/E of 9! I’m considering the potential of this blossoming penny stock

Despite several years of losses, this UK penny stock has an impressive valuation. I’m looking to see if it could…

Read more »

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »