The pandemic has had a significant effect on UK shares. Some stocks have gained over the last 12 months, while many others have seen their value fall.
Looking at FTSE 100 shares, for the most part stocks are still trading lower than they were 12 months ago, just as the pandemic was beginning to take hold in the UK.
There have been signs of a recovery in the last few months, however, with the index gaining 33% since its low of 4,993p in March 2020.
I still think there are some UK shares to buy today which I would add to my Stocks and Shares ISA. UK citizens have an allowance of £20,000 for the tax year in which they can receive with an ISA.
While there is more risk involved than in a Cash ISA, I think a Stocks and Shares ISA can be a good way to get started in the stock market.
Here’s two shares I’d buy today for my Stocks and Shares ISA.
Rio Tinto
Mining giant Rio Tinto (LSE:RIO) is a company with a strong record of growth over the years. Its share price has gained more than 220% over the last five years.
In a recent trading update, Rio Tinto announced it would be paying out a record dividend of $3.09 per share in addition to a special dividend of 93 cents per share.
The company also said its full-year profits had climbed 22%, as strong demand for iron ore led to an increase in the price of the commodity.
If the global economy is able to return to some sort of normality over the next 12 months, I think this demand could grow even faster and boost Rio Tinto’s profits and share price even further.
The major risk is that commodity markets such as iron ore can often be cyclical in nature. As Rio Tinto is experiencing significant growth right now based on soaring iron prices, a fall in these prices is certainly possible.
Intermediate Capital Group
The Intermediate Capital Group (LSE:ICP) share price suffered a decline last week, but the shares have performed solidly in recent years. The stock has gained more than 10% over the last 12 months, while that figure is just short of 70% over the last two years.
The asset manager entered the FTSE 100 after a period of sustained growth, and has continued that form to see its market capitalisation edge over £5bn.
Assets under management, a key measure of growth for those in the sector, have consistently grown for the business. In a January trading update, the company reported total assets under management rose 2% in the three months to 31 December, to €47.2bn.
Intermediate Capital says it is “well positioned to continue this trajectory” and if that is the case I think its share price can also continue to grow. On that basis I would add it to my list of shares to buy today.
Like other financial services firms, the company is subject to economic weakness due to the ongoing Covid-19 pandemic. Its profits have been underwhelming at times over the last few years, so there is a risk to buying the shares right now.