Commodities and resource stocks popular on first day of Aim shares in Isas

6th August 2013

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With yesterday the first day on which you can buy aim shares in an Isa wrapper, Hargreaves Lansdown has been quick off the mark, to list the top ten Aim shares bought within an Isa yesterday.

These are in alphabetical order –

Amur Minerals Corp

Berkeley Mineral Resources plc

Blinkx Plc

Bowleven Plc

Fastjet plc

Flowgroup plc

Gulf Keystone Petroleum

Iofina

Quindell Portfolio Plc

Sirius Minerals Plc

The broker says commodities and resource companies proved popular on the first day, in spite of the recent volatility in that area.  The list also includes a number of British technology stocks as well as a low cost airline. AIM provides investors access to diverse range of small British and foreign smaller businesses.

In its note, the broker says AIM shares can be very volatile with a high risk of failure and says they should only be considered by sophisticated investors who are comfortable with the extra risk and have a long-term investment horizon. Investors should only have a small exposure to AIM shares. Hargreaves’ Danny Cox suggests that this makes up no more than 5% of a portfolio.

TD Direct Investing suggests investors will have a lot of appetite for the new tax efficient method of AIM investing.

Stuart Welch, CEO, TD Direct Investing, says: “We currently have nearly 40,000 clients with AIM stocks in their trading accounts, so the appetite for alternative types of investment is clearly already there.

“The decision earlier this year to remove stamp duty from AIM listed shares was great news both for smaller businesses, and also DIY investors. AIM shares do traditionally come with more risk than FTSE 100s, so investors should be conscious of their own risk appetite. Part of our role at TD is to give clients the right tools to make solid judgements about a company’s strategy and business model, regardless of its listing.”

TD has published a list of AIM stocks bought in July versus the same time last year.

They won’t of course have been bought through an Isa but are clearly indicative of current and changing tastes.

Stuart Welch adds:  “In July last year, the top 10 AIM buy trades among TD clients were almost solely taken up by natural resource stocks, but this trend seems to have shifted over the course of the last year. The top 10 is now a more diverse array of AIM stocks. For instance, satellite operator Avanti Communications was the number five AIM purchase in July 2013, with Africa’s low-cost airline FastJet taking ninth position.”
The Top 10 AIM TD Client UK Buys for July 2013 and July 20121

TOP 10 AIM TD CLIENT BUYS JULY 2013 TOP 10 AIM TD CLIENT BUYS JULY 2012
This week Company % of top 10 trades This week Company % of top 10 trades
1 GULF KEYSTONE PETR 28.6% 1 GULF KEYSTONE PETR 25.2%
2 SIRIUS MINERALS 18.1% 2 XCITE ENERGY LTD 16.8%
3 CUPID 9.0% 3 BORDERS & STH PETR 12.0%
4 XCITE ENERGY LTD 8.8% 4 RED EMPEROR RES 11.0%
5 AVANTI COMMUNICATI 6.6% 5 RANGE RESOURCES 9.9%
6 BOWLEVEN 6.3% 6 ROCKHOPPER EXPLORA 7.2%
7= IGAS ENERGY PLC 5.9% 7 BOWLEVEN 5.4%
7= QUINDELL PORTFOLIO 5.9% 8 FALKLAND OIL & GAS 4.9%
9 FASTJET PLC 5.4% 9 CHARIOT OIL & GAS 4.2%
10 RANGE RESOURCES 5.2% 10 VICTORIA OIL & GAS 3.4%

 

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