Broker AJ Bell surges as Brits pump cash into stock market

Stockbroker AJ Bell saw record numbers of new small investors flock to its platform in a rush to buy bargain basement shares in the covid stock market volatility.

AJ Bell's broking platforms put on a record 30,113 new clients in the six months to March 31 - a period capturing the early weeks of the stock market swings.

Total net inflows of funds from the public came in at £2.1 billion against £1.8 billion for the same period a year earlier.

The company will pay an interim dividend of 1.5p for the half year.

However, it warned the outlook was uncertain given the state of the economic uncertainty around covid.

The share price, up a further 1.5p at 449.5p today, has surged from only 300p a month ago as investors realised it must be making big money as the market volatility sucked in retail investors.

FinnCap analyst Nik Lysiuk said of the steep rise in AJBell's share price chart: "Shares have flown and are now approaching new highs. The story has always been positive and remains to be so, but on an immediate term view the chart looks a little too excitable given the current market and economic backdrop. On the other hand, on the long view, investors will probably ask why they didn’t buy it at 450p. I remembered yesterday how I used to think Amazon was expensive at $330."

Half-year pre-tax profit was up 28% to £22.7 million with profit margins up from 35.3% to 37.2%.

Here are the most popular share buys, in rank order, AJ Bell has seen from retail investors in the past month

Shell

Lloyds

BP

International Consolidated Airlines

Barclays

Avacta

Aviva

Omega Diagnostics

Easyjet

L&G