What are the best UK shares to watch in 2021?
After an uncertain start to 2021, many investors are wondering which UK shares to watch now in 2021. We’ve broken down the key themes and gathered analysts’ expert insights – plus we’ll explain how to take a position.
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UK shares in 2021: key themes
The key themes for the next few months are going to be a major decider of which shares are the best to watch. Here are three areas that could be worth keeping an eye on:
- How well British and European businesses adapt to a post-Brexit European market after the end of the transition period
- The Covid-19 rebound after mass vaccine rollouts in 2021 – also see our analysts’ predictions about the likely shape of a post-pandemic economic recovery
- Ongoing debates and steps taken around the restrictions or legalisation of UK cannabis companies – the UK is being the largest supplier of medicinal cannabis in the world, with some of these companies having already made high profile debuts on the stock exchange this year (such as MGC Pharmaceuticals and Kanabo)
Best UK dividend shares in 2021 right now
The top UK dividend shares for the next quarter, based on our analysts’ picks are:
Best UK penny stocks for 2021 so far
The top UK penny stocks for the next few months, based on their share price increase in the quarter are:
- Galantas Gold Corp
- Quantum Blockchain Technologies
- Document Security Systems
Best UK tech stocks in 2021
The top UK tech stocks to watch in 2021, according to their performance in the quarter so far and our analysts’ assessment of their overall company outlook, are:
Best UK value and blue-chip stocks in 2021
Top UK value and blue-chip stocks to trade in 2021, based on their market cap are:
Top UK cannabis stocks in 2021
The top UK medicinal cannabis companies by market cap, based on stocks that are listed on either the London Stock Exchange (LSE) or alternative investment market (AIM) are:
How to trade or invest in UK stocks
With us, you can invest in shares and buy them outright or you can trade on the best UK companies’ share prices
Trading the best UK shares
- Decide whether you want to invest in shares with an IG ISA or open a share dealing account
- Create an account or, if you already have one, log in and go to our platform
- Transfer any existing share dealing portfolio or ISA held with other brokers to us for free
- Choose the number of shares you want to buy or sell
- Buy and sell your shares with us at quote or on exchange
Trading shares with us means that you’ll be speculating on a company’s share price without owning the shares directly. Instead, you’ll be opening a position with spread bets or CFDs, which are leveraged derivatives.
CFDs and spread bets are leveraged derivatives. This means that you can open a position with a deposit, called margin. While this can lower the cost of the trade, it will amplify both profits and losses – as these will be based on the full position size.
When investing in shares, you take direct ownership of the shares rather than just speculating on prices. This means that you’ll profit from your investment if you sell your shares for more than you paid to buy them. Equally, you’ll incur a loss should the price of the share depreciate.
Because leverage is only available for derivative trading, you’ll need to commit the full value of your position upfront when investing in shares.
With us, you can invest from zero commission on US shares and from £3 commission on UK shares. These rates are available to clients who opened three or more positions on their share dealing account in the previous month. Remember that investments can fall in value as well as rise, so you may receive back less than you initially invested.
Best UK shares to watch in 2021 summed up
- Certain key themes will affect stock market performance for the next few months of 2021 – either for better or worse
- Adapting (or being disrupted by) life after the Brexit transition period, the shape of the Covid-19 rebound going forward and certain niche opportunities – like the listing of certain medicinal marijuana companies in the UK – could all be ones to watch
- There are plenty of top UK shares to invest in, from penny stocks and tech stocks, to blue chip stocks and medicinal cannabis stocks
- To take a position on these sectors and the companies in them, you’ll need a share dealing or trading account
- Share dealing means you take direct ownership of the underlying shares. You’ll also receive voting rights and dividends (if paid), and you’ll profit from any upward movements in the stock’s price
- Trading means you take a speculative position on share price movements. You can go long if you think the share price will rise, or go short if you think it will fall
Last updated :
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.
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