Sure metrics can be utilized to gauge when FTSE 100 shares are experiencing heavy buying and selling quantity. Excessive quantity is usually the results of some notable growth, similar to an earnings name.

Monetary information websites are often the go-to for punters eager on the newest juicy gossip. However whereas they’re helpful to a level, they usually solely cowl corporations that promise attention-grabbing headlines.

Within the funding world, a few of the finest alternatives are present in lesser-known corporations that seldom make the information. That’s why it pays to know which shares are experiencing unusually excessive buying and selling exercise at any given second.

Understanding relative quantity

Regular buying and selling quantity is a measure of how a lot cash is altering palms for a sure inventory. On the Footise, Lloyds is nearly at all times at primary, with Vodafone, BP or Barclays close to the highest. Many such mega-cap shares expertise excessive quantity even when nothing attention-grabbing is going on.

Nevertheless, to search out out which shares are unusually fashionable in a given week, I examine the relative quantity (RVOL). This indicator calculates present quantity compared to common quantity over a sure interval. An element of 1 means it’s buying and selling on the regular charge. Something greater or decrease signifies a discrepancy.

For instance, if a inventory is experiencing quantity that’s 50% greater this week than common, its weekly RVOL will likely be 1.5. The timeframe could be something from a minute to a month.

FTSE 100 shares with excessive weekly RVOL

This week, the three Footsie shares with the best weekly RVOL had been Melrose Industries (LSE: MRO) (1.68), Londonmetric Property (1.65) and Intermediate Capital Group (1.58). Londonmetric took successful from BlackRock, which decreased its voting rights, and ICG bought a lift after JPMorgan put in an Obese score on the inventory.

However of the three, Melrose skilled the most important each day features yesterday, up 6.45%. These two metrics collectively inform me one thing massive is going on on the aerospace and defence firm.

Let’s take a look.

Missed expectations

Melrose launched its FY2024 earnings knowledge final week, resulting in a 92% each day spike in buying and selling quantity. Nevertheless, it was largely promoting, which wiped 11.7% off the share price earlier than this week’s gentle restoration.

The corporate posted a statutory pre-tax lack of £106m and solely £3.47bn in income — 2.48% under expectations. Subsequently, it lowered income estimates for the mid-term, which probably led to the temporary sell-off.

General, I don’t suppose the outcomes are too dangerous and the price will most likely bounce again shortly. My essential concern is the potential affect of US commerce tariffs. CEO Peter Dilnot feels assured they “aren’t a material threat” however I’m cautious of President Trump’s unpredictable nature. And there’s the added danger of US defence finances cuts, which might damage earnings.

I used to be stunned to see that almost all analysts haven’t adjusted their outlook. Their common 12-month price goal continues to be round 713p — a 36% improve. That’s virtually 4 instances greater than once I final lined Melrose in December.

Plus, it raised dividends by 20% from 5p per share to 6p – a robust indication of its dedication to shareholders. I need to say, the low price and 20% dividend enhance make it enticing. If tariffs threats ease off, it’s definitely a inventory price contemplating.

Relative buying and selling quantity could be a fast method to mentally shortlist shares with just lately notable occasions.