- City of London most bought in February
- Scottish Mortgage most sold last month
- AI winner Nvidia tops stock buys
Investors across the AJ Bell platform have been piling into popular City of London (CTY), JP Morgan Global Growth & Income (JGGI) in February and selling Scottish Mortgage (SMT) and Smithson Investment Trust (SSON).
Overall, 11.44% of all buy deals placed on the AJ Bell platform were for City of London - this comes as no surprise as the investment trust said recently it was on course to deliver its 57th successive dividend hike.
Good news from JP Morgan Global Growth & Income may have spurred interest which garnered almost 14% of all deals. On 13 February, the trust announced it was to issue new shares at a premium due to ‘ongoing market demand.’
The trust has performed strongly over 2023, trading at an average premium to NAV (net asst value) of 1.19%.
One caveat worth mentioning is the number of deals says nothing about the value of the overall transactions in relation to the size of the trust's assets.
In relation to funds, Fidelity Index World (FUND:BJS8SJ3) proved a popular buy for AJ Bell customers garnering 8% of all buying. The most sold fund in terms of number of deals was Terry Smith’s Fundsmith Equity (B41YBW7) for the second month in the row.
ARTIFICIAL INTELLIGENCE THEME DOMINATES BUYS
Amongst the top buys in February at 8.11% is AI darling Nvidia (NVDA:NASDAQ) and electric vehicle maker Tesla (TSLA:NASDAQ).
Nvidia fourth quarter earnings and sales beat Wall Street expectations with total revenue rising 265% from a year ago based on strong sales of AI chips for servers.
Nvidia shares seem to be doing well up 26% over the past month at $859 – this punchy price doesn’t seem to be stopping investors wanting to be part of the ‘AI action.’
Tesla shares in contrast are down over 2% to the $180-mark in February – a low not seen since May 2023. As reported by Shares, there has been some doubts about Elon Musk’s 20% delivery growth target for 2024.
The electric vehicle maker has recently been hit by a spate of unwelcome news – from an arson attack on a Tesla factory in Germany to disappointing fourth quarter earnings and revenues missing Wall Street forecasts.
FTSE 100 aero-engine maker Rolls Royce (RR.) and UK High Street bank Lloyds Banking Group (LLOY) are the most sold shares last month at 5.94% and 5.35% respectively.
Investors might be cashing in on Rolls Royce shares which are up 146% over the past year. The company also reported a strong set of full year results under the helm of a new Chief executive Tufan Erginbilgiç.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Sabuhi Gard) and the editor of the article (Martin Gamble) own shares in AJ Bell. Sabuhi Gard also has a private stake in JP Morgan Global Growth & Income.
