The data for the 20 most traded UK shares in the first half (H1) of 2022 is out. While the usual suspects are still on top, there are some surprising additions and omissions to consider.
I think trading volume data is a very useful but underused tool that investors can access. When I look at this data over a specific period, it gives me an idea of market interest in a certain company or stock over time. It also shows me changing investor interest across sectors. And looking at the share price action over the given period tells me if the interest is positive or negative.
Data
| POSITION | COMPANY |
| 1 | BP plc |
| 2 | Rolls Royce |
| 3 | International Consolidated Airlines Group |
| 4 | Lloyds Banking Group |
| 5 | Polymetal |
| 6 | Darktrace |
| 7 | EasyJet plc |
| 8 | Barclays |
| 9 | Cineworld Group |
| 10 | N Brown Group |
| 11 | Evraz |
| 12 | Vodafone Group |
| 13 | Glencore |
| 14 | Petropavlovsk |
| 15 | Unilever |
| 16 | Chariot |
| 17 | Royal Mail |
| 18 | Legal & General Group |
| 19 | ITM Power |
| 20 | Persimmon plc |
The usual suspects
Uk shares like Lloyds Bank and Rolls-Royce have been highly popular for several decades now. They rank consistently high on trading volume lists for the London Stock Exchange. In fact, banking and travel shares are evergreen sectors in the UK market, and shares like IAG, easyJet, Legal & General, and Barclays generally see consistently high investor interest. These are not surprising additions and speak to the popularity of these companies.
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Unilever shares have gained positive momentum recently, up 12% since March 2022. I think the reemergence of this fast-moving consumer goods giant is worth watching as a possible addition to my portfolio in the near future.
But it should also be noted that high trading volume does guarantee growth in the market. Rolls-Royce shares are down a whopping 31% this year while IAG, Barclays, and Lloyds Bank shares are down 26%, 17%, and 12% respectively. This is largely due to the market correction after the pandemic. But the silver lining here is that once the market sees an uptrend, these UK shares could rise fast given the trading volume.
Recent trends
The UK government has imposed tough sanctions on Russian companies operating in the country in response to the invasion of Ukraine. Shares of Petropavlovsk, Polymetal, and Evraz, which have operations in Russia, have fallen over 80%.
The two trends I have identified with this data from Fineco Bank are the emergence of tech UK shares and the renewable energy push. I think that both sectors will become very important over the next decade. Darktrace‘s (LSE:DARK) eventful LSE debut saw its share price rocket nearly 300% in six months but then fall spectacularly. It is currently trading close to its initial listing price. But I still am optimistic about the sector in the UK. Many tech companies are emerging and gaining momentum in the country which I think is a positive.
But ITM Power‘s (LSE:ITM) repeated inclusion in the most-traded list for two years now is a sign that renewable energy shares are here to stay. And although it will be laboured given the volatile market conditions, I am buoyed by this development. I will look into UK shares in this sector closely over the next few months and pick a company with strong fundamentals for my portfolio.
