DIY investors’ most popular shares: UK traders buy the dip amid banking sector turmoil but ditch airlines and car manufacturers
- Tesla, Amazon and Chinese electric vehicle maker Nio still the most widely held
- But bank stocks have seen the biggest rise in demand, according to eToro
- Airline stocks suffered, with engine maker Rolls-Royce the third most sold stock
UK retail investors have been buying the dip in banking shares while ditching airlines and car makers, the latest quarterly data by investing platform eToro suggests.
The list of most held stocks on eToro among UK investors continues to be dominated by tech firms, with Tesla, Amazon and Chinese electric vehicle maker Nio making up the top three.
Apple, Meta and Microsoft also feature further down the list, having seen their price improve significantly from last year’s sell-off.
What are you buying? eToro has unveiled the biggest risers and fallers in its latest stock data
Tesla’s share price is up 68 per cent since the start of the year, while Apple has risen 27 per cent and Meta shares have surged 76 per cent. The trio are the best performing stocks in the entire S&P 500 in 2023.
But bank shares have seen the biggest rise in demand, with the number of eToro investors holding Bank of America stock up 35 per cent, while Barclays holders surged 27 per cent and HSBC saw growth of 24 per cent.
Exela Technologies, an American business process automation company, was the top riser, seeing a near-50 per cent increase in holders at the end of the first quarter.
Man United mirrored the club’s footballing resurgence, coming in second with a 37 per cent gain in UK users.
Health-related and energy stocks – both defensive plays in the current climate – also made the list, including Johnson & Johnson and Enphase energy, with a 19 per cent and 17 per cent gain in users respectively.
Most widely held stocks by UK-based eToro investors
1. Tesla Motors
5. Meta Platforms
But travel industry stocks suffered, with planes engine maker Rolls-Royce the third most sold stock in the first quarter, as the number of investors tumbled 11 per cent.
However, the UK company remains among the top 10 most widely held stocks by UK investors on eToro, according to the platform.
Airline groups Lufthansa, British Airways owner, IAG, and budget carrier Ryanair also fell out of favour with investors, with holders falling 10 per cent, 7 per cent and 6 per cent respectively.
IAG shares have surged 14 per cent since the start of the year and are up slightly against a year ago, but remain down 65 per cent compared to five years ago.
Budget airline EasyJet did not see major changes in holders and remains in the top 10 of the most widely held stocks by UK investors on eToro.
European groups Air France and aerospace company Airbus SE became less popular, while US cloud-based software giant Salesforce saw the biggest fall in holders – down 14 per cent.
Ben Laidler, eToro’s global market strategist, said: ‘The banking sector has been in turmoil in recent weeks and share prices have been hit, but ultimately, we see any lasting impact being limited to a few individual banks rather than the broader system.
‘With this in mind, buying the recent dip in bank share prices may prove to be a good long-term play.
‘The airline industry has made up some ground since it was battered by Covid but the recovery has been slow and inconsistent and some investors are possibly deciding that their money can work harder for them elsewhere.’
Car makers may also be losing their appeal as investors take heed from the wider consumer squeeze happening globally, with Porsche AG seeing a 12 per cent decline in holders.
Laidler said this was ‘potentially a result of UK investors opting to diversify more outside the UK’.
Biggest rise in holders
1. Exela Technologies +49%
2. Manchester United +37%
3. Bank of America Corp +35%
4. Bed Bath & Beyond + 32%
5. Barclays +27%
6. HSBC + 24%
7. Johnson & Johnson +19%
8. Enphase Energy +17%
9. IBM +16%
10. Legal & General + 16%
11. Aviva + 16%
12. Lithium Americas + 16%
13. 3M +16%
14. NextEra Energy +14%
15. PepsiCo +13%
16. Occidental Petroleum +13%
17. BlackRock +13%
18. Procter & Gamble +12%
19. Verizon +12%
20. Coca-Cola +12%
Biggest fall in holders
1. Salesforce -14%
2. Porsche AG -12%
3. Rolls-Royce -11%
4. Lufthansa -10%
5. Accelleron Industries -9%
6. Sainsbury’s -9%
7. Sea Ltd-ADR -8%
8. Warner Bros Discovery Inc -7%
9. International Distributions Services (ex-Royal Mail) -7%
10. Spotify -7%
11. Canadian Solar -7%
12. IAG -7%
13. Tesco -6%
14. Airbus SE -6%
15. MercadoLibre -6%
16. Activision Blizzard -6%
17. Netflix -6%
18. Ryanair -6%
19. SiNtx Technologies -5%
20. Air France-KLM -5%