SelfWealth Monthly Trading Trends: February 2021

SelfWealth Monthly Trading Trends: February 2021

While the ASX managed to eke out a 1% gain in February, there was no shortage of action as the rotation from tech stocks into ‘value’ plays started to pick up momentum from the middle of the month. 

By the end of February, winning sectors of the market included financials and materials stocks, however, at the other end of the scale, consumer discretionary and information technology shares slumped as rising bond yields prompted investors to exercise caution with high-growth stocks.

Here is what the SelfWealth community were buying and selling through their SelfWealth trading accounts during February.

 

Which ASX shares and ETFs were the most held?

Although all the usual names featured in the portfolios of members across the SelfWealth community, BHP (ASX: BHP) and Fortescue Metals Group (ASX: FMG) continued their ascent thanks to strong iron ore prices, bumper earnings reports and lofty dividends for shareholders. 

The duo rose 12.8% and 10.7% across the month, however, the value of member holdings in these shares actually surged 22% and 40.9% respectively, showing a sign of conviction for these names.

Bank holdings, a familiar sight atop the list of the most-held shares, saw mixed fortunes, with SelfWealth members following the money into the likes of Westpac (ASX: WBC) and National Australia Bank (ASX: NAB) last month as the performance of Commonwealth Bank (ASX: CBA) stalled. 

Travel stocks were also gaining popularity despite a snap lockdown in Melbourne last month. Flight Centre (ASX: FLT) rose to 14th among the most-held stocks across the SelfWealth platform, while Qantas (ASX: QAN) edged two spots higher to 18th. The uplift, however, was largely driven by the underlying share price increase for both stocks, as investors turned optimistic about domestic travel opening up and the prospect of international travel restarting later in the year.

 

Stock Company
1 CSL CSL Limited
2 CBA Commonwealth Bank
3 WBC Westpac
4 NAB National Australia Bank
5 Z1P Zip Co
6 APT Afterpay
7 BHP BHP
8 FMG Fortescue Metals Group
9 ANZ Australia and New Zealand Banking Group
10 AFI Australian Foundation Inv
11 SWF SelfWealth
12 MQG Macquarie Group
13 TLS Telstra
14 FLT Flight Centre
15 WPL Woodside Petroleum
16 WES Wesfarmers
17 WOW Woolworths
18 QAN Qantas
19 ARG Argo Investments
20 MLT Milton Corp

 

Funds continue to pour into the most well-known ETFs across the ASX like the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard MSCI Index International Shares ETF (ASX: VGS), despite market volatility emanating from overseas. 

For the third time in as many months, popularity in the BetaShares Asia Technology Tigers ETF (ASX: ASIA) has continued to swell. Last month, the value of funds tied up in this ETF across the SelfWealth platform grew by 23.2% compared with the result from January, even as the ETF declined 2.1%. 

The growth of the ‘ASIA’ ETF was more than double the next fastest-growing ETF by value, the Vanguard Diversified High Growth Index ETF (ASX: VDHG), where the value of holdings increased 10.2% across all SelfWealth members.

 

ETF Company
1 VAS Vanguard Australian Shares Index ETF
2 VDHG Vanguard Diversified High Growth Index ETF
3 VGS Vanguard MSCI Index International Shares ETF
4 VTS Vanguard U.S. Total Market Shares Index ETF
5 A200 BetaShares Australia 200 ETF
6 IVV Ishares S&P 500 ETF
7 NDQ Betashares Nasdaq 100 ETF
8 ASIA BetaShares Asia Technology Tigers ETF
9 VEU Vanguard All-World ex-U.S. Shares Index ETF
10 AAA AAA Australian High Interest Cash ETF

 

Which ASX shares and ETFs were the most traded?

Already a favourite, a rising share price for Zip Co (ASX: Z1P) prompted an enormous level of trading activity in the BNPL challenger last month. In the process, a  new record for trading in any individual stock was set as more than 11,000 trades worth in excess of $180 million were recorded. 

The previous best for any individual stock was the Betashares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ), which in March last year saw nearly $170 million of shares trade hands. Ironically, this ETF was back in the thick of the action last month, rising to third as the most-traded stock by SelfWealth members on the back of a near 50% month-on-month increase in the value of shares traded.

We mentioned earlier that Fortescue Metals Group recorded a strong uptick featuring in SelfWealth members’ portfolios, and that came as the value of FMG shares traded last month more than doubled compared with January.

Elsewhere, two out-of-favour stocks amid reporting season attracted strong interest as shareholders in A2 Milk (ASX: A2M) and Appen (ASX: APX) were tasked with the decision to either sell their holdings or potentially top-up at a markedly lower price. Each subject to a heavy sell-down on the back of earnings downgrades, there were more than 3,000 trades involving these stocks worth a collective $35 million.

Our list wouldn’t be complete without the appearance of a couple speculative stocks that were all the buzz last month. Both exposed to the buy-now pay-later segment, IOUpay (ASX: IOU) and Fatfish Group (ASX: FFG) appealed to traders hoping their company might capitalise on a headstart in penetrating the Asia market. Combined, there were more than 4,500 trades in IOU and FFG.

Some other names with high trade numbers, even if lower in value, included lithium explorers Vulcan Resources (ASX: VUL) and Lake Resources (ASX: LKE), IT cloud business Cirralto (ASX: CRO), diagnostics company BARD1 Life Sciences Ltd (ASX: BD1), rental property website Rent.com.au (ASX: RNT), medicinal cannabis company Cann Group (ASX: CAN) and pharmaceutical business Race Oncology (ASX: RAC).

 

Top 20 stocks traded by value
Code  Security
1 Z1P Zip Co
2 FMG Fortescue Metals Group
3 BBOZ Betashares Australian Equities Strong Bear Hedge Fund
4 APT Afterpay
5 WBC Westpac
6 GEAR Betashares Geared Australian Equity Fund
7 VAS Vanguard Australian Shares Index ETF
8 VDHG Vanguard Diversified High Growth Index ETF
9 IOU IOUpay
10 CSL CSL
11 FLT Flight Centre
12 ASIA Betashares Asia Technology Tigers ETF
13 KGN Kogan
14 A2M A2 Milk
15 VGS Vanguard MSCI Index International Shares ETF
16 APX Appen
17 CBA Commonwealth Bank
18 NDQ Betashares Nasdaq 100 ETF
19 FFG Fatfish Group
20 TLS Tesltra

 

US share trading activity

Much of the Reddit-driven trading from January flowed through to February, with a number of stocks seeing not just sustained interest, but increasing trade numbers and trade values despite share prices sinking for popular names. At the top of this list was GameStop (NYSE: GME), with nearly $10 million in shares swapping hands across more than 3,000 separate buy and sell orders. 

Meanwhile, Churchill Capital Corp IV (NYSE: CCIV) edged into second place as the most-traded stock by value across the SelfWealth US share trading platform. The Special Purpose Acquisition Company (SPAC) drew strong interest in the lead-up to its merger with Lucid Motors, an up-and-coming luxury electric vehicle marque. Shares in the company soared to a high of US$64.86 per share on February 18, but ended the month more than 50% off that high and have since retreated further.

Short-seller target Clover Health Investments (NASDAQ: CLOV) also leapt up the list, despite booking a 32.6% decline across the month. Another SPAC, the stock gained attention in the community thanks to the backing of well-known billionaire Chamath Palihapitiya. However, shares in the tech-oriented medical insurance provider plummeted after Hindenburg Research dubbed Clover “a broken company” in light of concerns around its marketing practices and regulatory matters.

Other prominent movers outside of the mega-tech names and popular ARK ETFs included big data analytics company Palantir (NYSE: PLTR), down 32.1%, Chinese polysilicon manufacturer Daqo New Energy (NYSE: DQ), higher by 18.4%, and solid-state lithium metal battery producer QuantumScape (NYSE: QS), firming 25.6%.

 

Top 20 stocks traded by value
Code  Security
1 GME GameStop
2 CCIV Churchill Capital Corp IV
3 AMC AMC Entertainment Holdings
4 TSLA Tesla
5 AAPL Apple
6 ARKK ARK Innovation ETF
7 CLOV Clover Health Investments
8 PLTR Palantir
9 DQ Daqo New Energy
10 QS Quantumscape
11 FUTU Futu Holdings
12 AMCX AMC Networks
13 ARKG ARK Genomic Revolution ETF
14 AMZN Amazon
15 MSFT Microsoft
16 NAKD Naked Brand Group
17 NIO Nio
18 ABNB Airbnb
19 FCEL FuelCell Energy
20 ARKF Ark Fintech Innovation ETF

 

That’s all for this Trade Trends report, stay tuned for the next edition this time next month!

 

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