3 blue-chip stocks to explore as UK households lose confidence in BoE

By - Rishika Raina

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Highlights

  • Public satisfaction has hit a record low level, with a third of UK households disappointed with bank’s stance.
  • As per BoE’s survey results, the net satisfaction among the public was dragged down to -7% last month.
  • Since records began in 1999, the readings haven’t been this low.

With no sign of the cost-of-living crisis not slowing down, the UK households are losing confidence in the Bank of England (BoE). According to the official figures released on Thursday, the public's dissatisfaction regarding how BoE is handling the ongoing crisis is increasing. The central bank's survey uncovered that public satisfaction has hit a record low level, with a third of UK households disappointed with the bank's stance.

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As per the survey results, the net satisfaction among the public was dragged down to -7% last month. Since records began in 1999, the readings haven't been this low. The only time this reading has been negative is the record low level of -3% hit in May. In the meantime, the public's expectations for price hikes over the upcoming year soared to a record high in August.

The data was released a week before the monetary policy meeting at Threadneedle Street, where the BoE is expected to hike the rates for the seventh month in a row as it seeks to curb inflation. The rates are expected to be lifted from the present 1.75% to control inflation, which was recorded as 9.9% last month. In the middle of these developments, investors may evaluate the performance of some of the UK blue-chip companies with some of the largest market capitalisations. 

Shell plc (LON: SHEL)

The market cap of the UK-based energy producing giant, Shell plc, stands at £167,384.59m as of 16 September. Having a low P/E ratio of 5.66, SHEL’s dividend yield presently stands at 3.6% on an annual basis. SHEL shares were trading at GBX 2,322.50, up by 0.35%, at around 8:00 AM (GMT+1) as the market opened on Friday. The EPS (earning per share) of the FTSE 100 firm stands at 2.59, and its returns on both YTD (year-to-date) and one-year basis as of 16 September stand at 56.79% and 42.71%, respectively.

AstraZeneca plc (LON: AZN)

The market cap of the prominent producer of pharma products, AstraZeneca plc, stands at £156,963.88m as of 16 September. The company's dividend yield offering on an annual basis presently stands at 2.5%. AZN shares were trading at GBX 10,220.00, up by 0.89%, at around 8:00 AM (GMT+1) as the market opened on Friday. The EPS of the FTSE 100 firm stands at 0.08, and its returns on both YTD and one-year basis as of 16 September stand at 24.68% and 16.73%, respectively.

HSBC Holdings Plc (LON: HSBA)

The market cap of one of the UK's big four banking groups, HSBC Holdings plc, stands at £105,770.70m as of 16 September. HSBA shares were trading at GBX 531.90, up by 0.42%, at around 8:00 AM (GMT+1) as the market opened on Friday. The EPS of the FTSE 100 firm stands at 0.62, and its returns on both YTD and one-year basis as of 16 September stand at 42.62% and 18.40%, respectively.