- High energy prices and anticipation of early interest rate hikes could trigger volatility on the London Stock Exchange
- In a volatile stock market, investing in the stock and businesses with a focused operational approach could be a wise investment decision.
The energy crisis in the UK is likely to worsen further following a recent surge in crude oil prices in the international market. Brent crude oil is currently trading near US$84, fuelled by the higher global demand. Surging energy prices could intensify inflation, leading to an early interest rate hike in the UK.
High energy prices and anticipation of early interest rate hikes could trigger volatility on the London Stock Exchange, which is already underperforming compared to global peers.
Usually, it has been seen that investing in stock and businesses that have focused business operation in sub-sector of the large industry could be a wise investment decision despite volatility, as these companies operate in a niche segment and have the expertise to deal with the adverse business environment.
Let us look at 3 FTSE listed stocks that possess a focused business operation:
Helium One Global Ltd (LON: HE1)
The company operates large scale helium projects where it does exploration and production of helium gas. Its flagship project is located in Tanzania, covering an area of over 4,512 km.
The company operates in the focused market segment of helium gas extraction and has less competition from other businesses as not many companies operate in helium gas exploration. Helium gas has many uses in the medical, technology and aerospace sector making Helium One Global Ltd a unique business to own. Consistent demand for helium gas from various industries ensures revenue and profitability for the company. Also, the company is carrying out exploration work at its three-project site located in Tanzania.
Helium One Global Ltd shares trade at GBX 7.40, down by 2.63% on 12 October at 8:45 am GMT+1 with a market cap of £46.93 million.
Darktrace Plc (LON: DARK)
It operates in the cyber security segment offering different products and solutions to its clients. It uses various self-learning technology to detect and neutralise cyber threats.
The company operates in a niche market segment that is underpenetrated at present. The company’s business uses Machine Learning (ML) and Artificial Intelligence (AI) to develop its products. It is currently in the business cycle’s growth stage, offering high prospects in the long run. The company reported a 41.3% rise in revenue at 281,341 in the financial year ended 30 June 2021. It has positive expectations for the upcoming year and anticipates revenue growth in the 35% to 37% range.
Darktrace Plc shares trade at GBX 804, down by 3.25% on 12 October at 8:45 am GMT+1 with a market cap of £6,083 million.
Argo Blockchain Plc (LON: ARB)
The company operates in the cryptocurrency mining segment. It uses sustainable energy and infrastructure to executes its mining activities.
The company’s stock has a dual listing on the New York and London Stock Exchange. It recently got listed on Nasdaq through depository receipt, trading under the ticker name ARBK. Listing on the US Stock Exchange has increased the company’s investor base would also help it to raise new capital in the future. The company’s business operation has been excellent, and it mined 165 Bitcoin and its equivalent in September 2021, which brings the total Bitcoin mined to 1479 as of 30 September 2021. It reported a mining profit of £4,636,497 in September month.
Argo Blockchain Plc shares trade at GBX 115.79, up by 1.57% on 12 October at 8:45 am GMT+1 with a market cap of £551.16 million.