What shares did other investors buy in 2017?

In a year of political turmoil and booming markets, what was everyone else buying? Laura Suter finds out

Despite a disastrous snap election, ongoing Brexit negotiations, an interest rate rise and increasing fears that markets worldwide were about to correct, 2017 was a year in which most investors prospered.

Not a single asset class delivered a negative return this year. The FTSE 100 index rose by just over 5pc in the year, closing this week at a record high, while the FTSE 250 rose by more than 12pc. Within that, of course, there were many individual losers. But what were investors buying and selling – and what does that tell us about the state of the market past and future?

Lloyds Banking Group

Lloyds was consistently the most bought stock throughout the year. The Ukfocused bank has suffered from “Brexitphobia” – a distrust by the market of businesses where revenues are largely domestic.

“Lloyds enjoys lasting appeal for retail investors because of its familiarity, its simplified banking business model, and its income potential,” said Laith Khalaf of Hargreaves Lansdown, Britain’s biggest private client broker.

The stock has been touted as the greatest beneficiary of interest rate rises by many fund managers as these will increase profitability.

The share price has risen 4pc in the past year and it currently yields 3.8pc. However, many expect the dividend to rise, with Richard Buxton, the prominent fund manager of Old Mutual Global Investors, predicting it could hit 6p a share – which could give

a yield at today’s price of around 9pc.

Provident

Provident Financial was the most sold stock after a 68pc one-day crash.

It then became the most bought stock as investors snapped it up in hope of a rebound. Doorstep lender Provident was backed by prominent fund managers, such as Neil Minerals, oil and gas shares have been some of the most bought in 2017 Woodford, who has held on to his stake in the company. Shares hit a low of 589.5p in August, but now trade at around 875p.

Glaxosmithkline

Another stock that bargain-hunters loved was pharmaceutical giant Glaxosmithkline, which saw its share price fall in October to a 16-month low amid fears that its divi was not safe.

Buyers have not yet been rewarded. The share price has fallen another 4pc since that day, and now sits around 16pc down this year.

Housebuilders

Popular UK housebuilders, such as Barratt Developments, Berkeley Group and Taylor Wimpey, have all ranked in the most sold shares of the year.

Housebuilders were hit hard in the market falls after the EU referendum, but have all seen steady gains this year. Barratt’s share price has risen 38pc in the past year, while Berkeley has shot up almost 50pc and Taylor Wimpey’s by 34pc.

Mining companies

The mining sector rebounded in share price and dividend payments. Many private shareholders responded by selling up and taking profits.

Glencore was the most sold stock of 2017 after shareholders saw a 30pc rise in the share price since the start of the year.

The weaker pound has helped to boost the company, and others such as Rio Tinto, BHP Billiton and Anglo American, as earnings in US dollars are flattered when converted back to sterling.

Sirius Minerals and UK Oil & Gas Investments

Risk-takers ploughed money into Bitcoin this year, and at some points funds focused on Bitcoin became the most popular. Speculative investors also pushed Sirius Minerals and UK Oil & Gas Investments to the top of online broker the Share Centre’s most bought stocks for the year.

UK Oil & Gas Investments, the company behind the Sussex exploration well dubbed the “Gatwick Gusher”, saw a 120pc rise in its share price in 2017, although at one point the share price was up 460pc. Helal Miah, of the Share Centre, said: “Speculative investors chased the potential for vast returns if fracking operations ever become anything like that in the US.”

Sirius Minerals is another speculative bet. The fertiliser development company is behind a polyhalite project in North Yorkshire. The share price is up 21pc over the year, but at one point had risen 84pc.