Saxo UK’s May Client Trends Report reveals a generally optimistic market sentiment as retail investors continue to focus on equities, with significant interest in major US stocks such as Alphabet, Amazon, and Berkshire Hathaway. While UK clients remain positive, sectors like Rolls-Royce, Shell, and Marks & Spencer saw continued buying activity. Despite strong equity momentum, gold remains a popular hedge, reflecting ongoing investor caution.
Saxo UK’s latest client trends report for May highlights notable market movements as investors take advantage of recent dips while navigating ongoing economic pressures. In a month characterised by recovery, clients remain committed to key equities and are hedging their investments in gold. The report underscores the ongoing optimism among retail investors despite broader market challenges, including bond market volatility and hedge funds taking short positions.
Retail investors in the UK are particularly drawn to US mega-cap stocks such as Alphabet, Amazon, and Berkshire Hathaway. A strategic decision to retire by Warren Buffett catalysed renewed interest in these stocks, with many investors considering it an attractive entry point. Equities sentiment remains broadly positive, reflecting an ongoing trend where retail clients demonstrate confidence in the market’s recovery.
Investor preferences and market dynamics
In May, Saxo UK clients continued to show a strong preference for major US stocks, particularly Alphabet, Amazon, and Berkshire Hathaway, which saw increased buying activity following Warren Buffett’s announcement of his retirement. This event provided an opportunity for many to enter the market at a perceived advantageous time. Similarly, stocks like UnitedHealth, which saw significant declines, attracted net buyers as investors attempted to capitalise on lower prices.
Other stocks that garnered notable attention include Eli Lilly, Super Micro Computer, and Nvidia. While Nvidia saw a balanced sentiment with 51% of trades being buys, its competitor AMD experienced a more positive outlook with 61% of buy trades. Additionally, shares in companies like D-Wave Quantum, Rigetti Computing, and Palantir Technologies also attracted interest, with respective buying percentages ranging from 56% to 60%.
UK-specific trends and stock preferences
In the UK, momentum remained strong for stocks like Rolls-Royce, with 58% of trades being buy positions, reflecting a positive outlook amidst a 10% rally in the stock. Marks & Spencer experienced a surge in popularity following a cyber attack, leading many investors to view the dip as a buying opportunity. Shell also maintained its status as a favourite, with 80% of trades being buy positions, showcasing strong investor confidence in the energy giant.
Meanwhile, Vodafone and easyJet experienced selling pressure from retail investors as both stocks saw subdued performances post-reporting. Vodafone, in particular, saw clients exiting positions, while Barclays witnessed profit-taking after a 10% rally in May, with 20% YTD growth. Despite some profit-taking, the broader UK equities market continues to demonstrate resilience.
Gold and ETFs remain popular investment options
While equities remain the focus for many retail investors, gold continues to be in demand as a hedge against potential market volatility. Saxo UK’s clients demonstrated a strong preference for gold-related ETFs, with the iShares Physical Gold ETC receiving 60% buy trades in May. The ongoing demand for gold reflects investor caution, with many seeking to balance their portfolios amidst uncertainties in other asset classes.
In the exchange-traded fund (ETF) space, retail clients showed continued interest in S&P 500 ETFs, with strong buying activity observed in both Vanguard S&P 500 Accumulation and Distribution UCITS ETFs, which saw buy trade rates of 69% and 76%, respectively. These trends indicate a sustained preference for broad market exposure, with a particular emphasis on US equities through ETFs.
FX and sector specific trading trends
In the forex market, clients showed a mild preference for the euro, while the British pound saw some selling activity. Investors were also slightly long on the US dollar against sterling, as clients navigated the fluctuations in currency markets.
Geographically, Saxo UK’s traders were predominantly long on Australia and France, reflecting the performance of these markets relative to other regions. Notably, there was a surge in short positions in the US Dow Jones index, particularly influenced by the decline in UnitedHealth’s stock.
Top-performing stocks
Below is a table that highlights the top-performing stocks according to Saxo UK’s client trends for May, with buy percentages indicating the level of investor interest:
| Stock | Buy Percentage |
|---|---|
| UnitedHealth Group Inc. | 81% |
| Vanguard S&P 500 Acc UCITS ETF | 76% |
| Berkshire Hathaway Inc. B | 73% |
| Eli Lilly & Co. | 73% |
| Super Micro Computer Inc. | 70% |
| Taiwan Semiconductor (TSMC) – ADR | 69% |
| Vanguard S&P 500 Dist UCITS ETF | 69% |
| Legal & General Group Plc | 68% |
| Vanguard FTSE All-World UCITS ETF | 68% |
| Alphabet Inc. – A Share | 65% |
| Alphabet Inc. – C Share | 65% |
| Amazon.com Inc. | 63% |
| Advanced Micro Devices Inc. | 61% |
| Marks & Spencer Group Plc | 61% |
| iShares Physical Gold ETC | 60% |
| Rigetti Computing, Inc. | 60% |
| Tempus AI Inc | 59% |
| D-Wave Quantum Inc. | 59% |
| Rolls-Royce Holdings Plc | 58% |
| BP Plc | 58% |
| Robinhood Markets Inc. | 56% |
| Palantir Technologies Inc | 56% |
| Apple Inc. | 56% |
| Boeing Co. | 55% |
| Alibaba Group Holding Ltd – ADR | 55% |
| Uber Technologies Inc. | 53% |
| Glencore Plc | 52% |
| NVIDIA Corp. | 51% |
| Coinbase Global Inc | 51% |
| Tesla Inc. | 50% |
| Meta Platforms Inc. | 50% |
| MicroStrategy | 49% |
| Intel Corp. | 44% |
| Vodafone Group Plc | 42% |
| Broadcom Inc. | 42% |
| The Walt Disney Company | 42% |
| Microsoft Corp. | 39% |
| Hims & Hers Health Inc. | 39% |
| Barclays Plc | 16% |
About Saxo UK
Saxo UK is a licensed subsidiary of Saxo Group, a global fintech leader that provides innovative online trading and investment solutions. Operating out of London since 2006, Saxo UK gives clients access to a wide range of financial instruments across various asset classes, including equities, forex, ETFs, options, and more. The platform aims to democratise financial markets, offering individual investors the same tools and market access as large institutional investors, providing them with the necessary resources to fulfil their financial aspirations.
Founded in Copenhagen in 1992, Saxo was one of the pioneers in the online trading space, providing cutting-edge technology that allows individuals to trade in global capital markets. The Saxo Group now employs over 2,100 people and operates in major financial centres globally, including London, Singapore, Amsterdam, Zurich, Dubai, Shanghai, Hong Kong, and Tokyo. With client assets exceeding 100 billion USD, Saxo continues to be a trusted partner for more than 120 financial institutions, enhancing the investment experiences of clients through its open banking technology.
Shikha Negi is a Content Writer at ztudium with expertise in writing and proofreading content. Having created more than 500 articles encompassing a diverse range of educational topics, from breaking news to in-depth analysis and long-form content, Shikha has a deep understanding of emerging trends in business, technology (including AI, blockchain, and the metaverse), and societal shifts, As the author at Sarvgyan News, Shikha has demonstrated expertise in crafting engaging and informative content tailored for various audiences, including students, educators, and professionals.
