Biggest UK Stocks Near 52-Week Highs

UK equities rebounded after inflation data, buoyed by a surge in energy and mining shares, suggesting investors are still turning to the UK to find undervalued stocks.

Ten Largest UK-Listed Stocks Near 52-Week Highs and Annual Performance

1. Glencore (GLEN) +104% y/y
2. Standard Chartered (STAN) +60% y/y
3. Anglo American (AAL) +87% y/y
4. Vodafone (VOD) +34% y/y
5. Aviva (AV) +7% y/y
6. Kingspan (KRX) +43% y/y
7. Segro (SGRO) +51% y/y
8. Admiral (ADML) +8% y/y
9. United Utilities (UU) +22% y/y
10. Schroders (SDR) +47% y/y

Value Stocks Supporting UK Equities

The UK premier index is treading water amid a push-and-pull of conflicting issues, leaving investors unenthusiastic and trading volumes low, typical of the summer. Concerns over high yields are being allayed by gains in value and defensive stocks, which might actually help UK stocks to outperform. The low weighting of high-valuation tech stocks helps insulate British indices from concerns about AI growth and allows many more traditional firms, such as mining, utilities, and telecom, to outperform amid a rotation into value. A review of stocks reaching 52-week highs shows that the largest UK companies in defensive sectors are among the leaders. If the rotation out of tech continues, some of these large names have breakout potential as markets settle into the post-earnings season, relative corporate calm, and a greater focus on macroeconomic data. UK heavyweights have been the largest beneficiaries of earnings season, and other large firms could have further upside amid a general flight to safety. The recent surge in gold prices, driven by debt worries in the US, has helped support miners, which have a larger weighting in the UK, while utilities have a better chance of weathering a credit-driven short-term downturn. Here's what's behind some of the recent moves from the biggest UK-listed stocks that are near their 52-week highs:

Commodity Surge Helps Glencore and Anglo American

The top miners on the list reported strong earnings last month, which helped their stock prices continue surges that had been ongoing from earlier in the year amid higher commodity prices. The war in the Middle East highlighted energy supply vulnerabilities while the buildout of AI infrastructure increased power load, accelerating the move to alternatives and increasing demand for copper, a key area of interest for both companies. Glencore's H1 EBITDA rose 86% in a year based on stronger copper prices. Anglo American saw less impressive gains, with EBITDA up 35% year over year, but investors liked the dividend increase. However, M&A could be a catalyst for the sector, as miners generally have more cash and may look to acquire rivals. The CEOs of top firms implied in their earnings that acquisitions were still on the table. Anglo American is still working on getting full approval for its takeover of Teck, while Glencore's earnings could renew interest from Rio Tinto.

Aviva and Admiral, The Odd Ones

Generally, the finance sector is a refuge for investors worried about high valuations, and UK banks have been higher, with Standard Chartered rising alongside NatWest. The Asia- and Africa-focused lender stands out in the UK-listed banking sphere after posting record profits in H1 and raising its guidance.  However, two firms stand out for reaching 52-week highs despite having single-digit gains over the last year. That's because they have been even lower in the interim and may be just turning things around, which could mean they have greater upside potential. Aviva and Admiral have been more vulnerable to the car finance scandal, but the worst of the issue has been resolved, and there is extensive legal wrangling to delay or lower the payments. With the risk largely reduced, the two firms can now focus on growth.