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September is a key month for Stocks and Shares ISA holders. Why? Because it’s just before the autumn/winter period, which is historically the best-performing time of year for the stock market. It can pay to buy stocks now before a possible ‘Santa rally’ and/or golden period comes our way.
It’s also why I was keen to see the September reporting for what British investors are buying in their ISAs – courtesy of the good folks at AJ Bell. And I think it’s fair to say there were some intriguing findings in the ‘Top 10’ for both buys and sells!
Buying and selling
Interestingly, a few stocks pop up in both lists – FTSE 100 manufacturer Rolls-Royce and chipmaker Nvidia. Both large buying and selling indicates that these are popular day-trading stocks. It’s likely that some ISA investors are engaging in the risky business of gambling on short-term ups and downs in share price. That’s not something we aim for at The Twelfth Magpie!
Zeroing in on the Top Sell list shows a decidedly technological bent. Big American names like Meta, Microsoft and Micron are all among the stocks being sold off in September. Perhaps this is a sign that British investors are worried about the rumoured stock market crash due to artificial intelligence.
The Top Buy list, by contrast, is very UK-focused. Drugmaker AstraZeneca and telecoms giant BT both make the cut. And in the top five we have three FTSE 100 banks – Barclays (LSE: BARC), NatWest and Lloyds.
And there’s one which I think is worthy of special consideration today….
A buy to think about?
It doesn’t take much digging to see what might be attracting Barclays into the nation’s Stocks and Shares ISAs. The share price has tripled since early 2024. The price-to-earnings ratio looks mightily cheap – still in the single digits at around 9.5! Throw in a billion-pound share buyback programme and a dividend yield close to the FTSE 100 average and there’s lots to like.
Any drawbacks? Well, in about a month’s time we might see Barclays and other bank shares shoot up to the top of AJ Bell’s ISA Top Sells list instead.
Why is that? Because of the rumours of a windfall tax on the banking sector coming in the Autumn Budget. It remains to be seen what kind of levy could be enacted, or whether it’s permanent or temporary – or whether it even happens.
While a government-imposed tax could take the shine off Barclays shares, it should be pointed out that earnings have been elevated for years now. This could continue too, with interest rates expected to remain at the 4% mark or higher (costlier borrowing pushes up margins for banks). I think they’re still worth considering.
Should you invest £5,000 in Barclays Plc right now?
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John Fieldsend owns shares in Rolls-Royce, Nvidia, Strategy, AstraZeneca, Barclays and Lloyds.
This story originally appeared on Motley Fool
