Top 3 FTSE 100 shares to buy in 2022

By: Crispus Nyaga
Crispus Nyaga
Crispus is an active trader, where he is followed and copied at Capital.com. He lives in Nairobi with his… read more.
on Dec 21, 2021
  • The FTSE 100 index has been in a strong bullish trend this year.
  • It has nonetheless lagged its global peers like CAC 40 and Nasdaq 100.
  • We identify some of the shares to buy in 2022.

The FTSE 100 index has had a relatively strong year. It has risen by more than 12% and data compiled by Hargreaves Lansdown show that most constituent companies have risen this year. Still, the index has underperformed the other key indices like the Dow Jones, CAC 40, and Nasdaq 100 index. Here are some of the best FTSE 100 shares to buy in December.

Royal Mail

Royal Mail (LON: RMG) is the biggest letter and mail company in the United Kingdom. The firm has a market capitalization of more than £5 billion, making it one of the newest members of the FTSE index. The company was among the top beneficiaries of the Covid-19 pandemic as it led to more demand for its parcel business.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The Royal Mail share price has done relatively well in 2021. It has risen by more than 55%, making it the 5th best performer. During the year, the firm has recorded strong results as the demand for parcels has jumped. 

As a result, the company recently announced that it will offer a special dividend of about £400 million. It also announced that it would acquire Rosenau Transport, a Canadian logistics company.

There is a likelihood that the RMG share price will continue doing well in the coming year, Besides, the UK government is expected to announce new lockdowns after Christmas. As a result, this will lead to more demand for Royal Mail’s parcel products.

Glencore

Glencore (LON: GLEN) is one of the biggest mining and trading company in the FTSE 100. It has a market cap of more than £48 billion. The Glencore share price has risen by more than 50% in 2021 as investors have cheered the stellar performance by the company. Most of the commodities that it mines like copper and nickel have risen. 

Most importantly, Glencore has benefited from its coal business. Unlike most mining companies, Glencore has reiterated that coal is an important product. As such, it has refused to divest the commodity amid the ESG trend. The company will benefit from the ongoing underinvestment in the commodity. 

Therefore, there is a likelihood that the Glencore share price will keep rising in the coming year. Besides, the firm is expected to boost its payouts to shareholders.

Lloyds Bank

Lloyds Bank (LON: LLOY) is a leading UK bank valued at more than £32 billion. The bank offers its services across several brands including Halifax, Bank of Scotland, Scottish Widows, and MBNA among others.

The Lloyds share price surged by more than 30% in 2021. This happened because of the strong UK housing market, which led to a higher demand for its mortgage products. The company also got fresh Chief Executive and Chairman. 

Also, it announced that it will invest further in wealth management and rental properties. In 2022, the Lloyds share price will likely rise because of the rising interest rates in the UK and the strategies by the new CEO.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >

*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.