Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Vodafone share price could fall further after Huawei 5G equipment ban

Shares in Vodafone opened lower on Wednesday and look capable of sliding further this week after the UK government ordered British telecoms companies to remove Huawei equipment from their 5G networks by 2027.

Shares in Vodafone opened lower on Wednesday and could potentially fall even further this week after the UK government ordered British telecoms companies to remove all Huawei equipment from their 5G networks by 2077.

Vodafone could have seen a sharper decline in its share price on Wednesday, but thankfully the UK government opted to give telecoms companies a longer runway for removing the Chinese firm’s 5G kit than the two years suggested by the press earlier this week.

Interestingly, the 15-day simple moving average (SMA) for the stock crossed below the 50-day SMA on Tuesday, signalling a possible downtrend in momentum for Vodafone.

Vodafone opened 1% lower in early morning trading on Wednesday, with the stock at 125p per share at the time of publication and down 15% year-to-date.

UK government bans purchase of Huawei 5G components

Media secretary Oliver Dowden confirmed that British telecoms providers will be banned from buying 5G equipment produced by Huawei from the end of this year, with MPs eager to phase out the Chinese firm’s technology from its infrastructure over national security concerns.

‘The NCSC (National Cyber Security Centre) has now reported to ministers, that they have significantly changed their security assessment of Huawei’s presence in the UK’s 5g network,' Dowden told MPs.

‘This has not been an easy decision, but it is the right one for the UK telecoms networks, for our national security and our economy, both now and indeed in the long run,’ he said.

‘By the time of the next election, we will have implemented in law an irreversible path for the complete removal of Huawei equipment from our 5G networks.’

Unsurprisingly, Beijing and Huawei are not happy with the UK government’s decision, with the Chinese firm warning that the move ‘threatens to move Britain into the digital slow lane, push up bills and deepen the digital divide’.

Meanwhile, the Chinese ambassador to the UK, Liu Xiaoming, urged the government to reconsider its ban on Huawei equipment and warned that there would be serious consequences if Britain continues to treat China as a ‘hostile country’.

Deutsche Bank eyes signifcant gains for Vodafone stock

For Vodafone and its peers like BT, the decision by the UK government to ban Huawei 5G kit is yet another setback this year and will hinder their development of essential communications infrastructure across the country.

However, analysts at Deutsche Bank remain optimistic about the Vodafone, with the German lender reiterating its ‘buy’ rating and issuing a target price of 225p per share – implying a potential upside of 80% for the stock.

How to trade stocks with IG

Looking to trade Vodafone and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs and spread bets in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Vodafone’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.