Fineco provides updates on the most traded stocks on its platform, and last week, one of the top movers was Royal Dutch Shell. The energy company’s stock was the second most traded on the platform, with buying volume exceeding selling volume. Here’s why investors were trading Royal Dutch Shell shares heavily last week and a look at other companies with high trading activity.
[top_pitch]
What is Royal Dutch Shell?
Royal Dutch Shell, is an international energy company. It deals in the exploration, production, refining, and marketing of oil and natural gas. It also manufactures and markets chemicals.
The company was formed in 1907 and is headquartered in The Hague, Netherlands. It currently operates in more than 70 countries, including the UK.
The company’s shares are traded on the London Stock Exchange, Euronext Amsterdam and the New York Stock Exchange.
Why were Royal Dutch Shell shares heavily traded?
According to trading data from Fineco, Royal Dutch Shell was one of the top movers on the platform last week, trading at 69% volume buy and 31% volume sell.
So what prompted this? Well, it’s likely related to the company confirming it will appeal a court ruling that ordered it to accelerate its carbon emission reduction targets.
On 26 May, a Dutch court ordered Royal Dutch Shell to reduce its greenhouse gas emissions by 45% by 2030 from 2019 levels, significantly faster than the energy company’s current plans to cut down its emissions by at least 6% in 2023, by 20% by 2030, by 45% by 2035 and by 100% by 2050 (from 2016 levels). The company claims that it has been unfairly singled out.
It would appear that the news of the appeal has piqued investors’ interest in the company. The higher buying volume in particular could be an indicator that investors are hopeful of a successful appeal.
If successful the company’s business might not be affected negatively in the near and medium term. This would likely be the case if it heeded the court order and immediately pursued a more aggressive energy transition and carbon reduction strategy.
[middle_pitch]
What other stocks have traders been buying?
Apart from Shell, other stocks that have seen a lot of buying activity in the UK last week include:
- Capita
- Sylvania Platinum
- Petrofac
- Premier Foods
- EQTEC
- Devro
- Helium One
- ITV
How can I buy shares in Royal Dutch Shell?
Buying shares from companies like Royal Dutch Shell is relatively easy. Basically, all you need is a share dealing account, like the FinecoBank Multi-Currency Trading Account. After opening your account and funding it, simply search for the stock you want and place your order.
You also have the option of investing through a stocks and shares ISA. Investing through an ISA is a great way to protect your investment’s growth and income and from tax. To help you make a good choice, we have reviewed and rated some of the top providers of stocks and shares ISAs in the UK.
As always, remember that all investing is inherently risky. You could get back less than you put in. So do your homework before you part with your money and seek professional advice if necessary.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
