SelfWealth Monthly Trading Trends: November

SelfWealth Monthly Trading Trends: November

November was a strong month for the local index, with the ASX 200 increasing 2.7%.

Although the headline figure was an impressive result, it was actually weighed down by continual selling in the financial sector, which fell 3.5% across the month. A closer look at the breakdown of this decline, where the major banks saw their share prices fall by an even greater margin, points to resilience in a number of other key sectors and stocks.

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

 

Which shares and ETFs were the most held?

With its shares surging 10.7% last month, CSL Limited (ASX: CSL) is now the most-held stock by value within the SelfWealth community. Despite releasing no price-sensitive news across the month, CSL has been on a tear, with its stock up more than 50% since the beginning of the year. While other blue-chip stocks have flashed warning signs around their growth outlook, investors appear confident in the global biotechnology company’s R&D and product pipeline.

Although November was a woeful month for the Big Four banks, these stocks remain firmly entrenched within the leading five stocks by value. More notable was the shift in capital allocation between these banks. Previously, Westpac (ASX: WBC) was the most-held stock by value within the SelfWealth community. However, WBC has now dropped to third after its shares dived 13.1% following money-laundering allegations raised by AUSTRAC.

Commonwealth Bank (ASX: CBA) has become the preferred bank stock among our members. As the only Big Four bank to see its share price rise last month, it could be that investors sense greater stability in the nation’s largest bank. With that said, the value of ANZ (ASX: ANZ) shares held by the SelfWealth community climbed 15% from October’s result as investors moved out of Westpac.

For the second month in a row, Neuren Pharmaceuticals (ASX: NEU) proved a major mover, leaping from the 15th most-held stock into 8th place, ahead of Telstra (ASX: TLS), BHP (ASX: BHP) and Cochlear (ASX: COH). Shares in NEU were up 10% for the month. However, with no news released during that time, it appears some heavy money is backing the company as its value within the SelfWealth community more than doubled that during October.

 

Stock Company
1 CSL CSL Limited
2 CBA Commonwealth Bank
3 WBC Westpac
4 NAB National Australia Bank
5 ANZ Australia and New Zealand Banking Group
6 AFI Australian Foundation Inv
7 MQG Macquarie Group
8 NEU Neuren Pharmaceuticals
9 TLS Telstra
10 BHP BHP
11 MLT Milton Corp
12 ARG Argo Investments
13 COH Cochlear
14 WOW Woolworths
15 WPL Woodside Petroleum
16 RIO Rio Tinto
17 WES Wesfarmers
18 APT Afterpay
19 A2M The a2 Milk Company
20 RHC Ramsay Health Care

 

Among ETFs, there were few changes to the top ten funds held by our members. One small change was BetaShares NASDAQ 100 ETF (ASX: NDQ) moving up a position into 9th place. This is likely due to the strength of the NASDAQ index, which rose 4.5% last month. Vanguard Australian Fixed Interest Index ETF (ASX: VAF) fell out of the top 10, replaced by Vanguard Australian Shares High Yield ETF (ASX: VHY). This suggests some investors may be looking for higher income ETFs.

 

ETF Company
1 VAS V300AEQ/ETF
2 VGS VINTL/ETF
3 VDHG VDHIGHGROW/ETF
4 VTS VUSTOTAL/ETF
5 IVV ISCS&P500/ETF
6 A200 BETAAUS200/ETF
7 VEU VWORLDXUS/ETF
8 STW SPDR S&P/ASX 200 Fund
9 NDQ BETANASDAQ/ETF
10 VHY VHIGHYIELD/ETF

 

Which shares and ETFs were the most traded?

With the market still in an uptrend, the data from November shows that SelfWealth members are still investing in shares. With that said, the ratio of buying volume to selling volume has shifted rather markedly, from a ratio of approximately 2.5:1 in October to 1.25:1 during November. If we look at the most actively traded shares and ETFs, this has also eased from 1.75:1 to 1.23:1.

 

Purchases
Code Security
1 VAS V300AEQ/ETF
2 ANZ Australia and New Zealand Banking Group
3 BBOZ BETA SBEAR/FD
4 APT Afterpay
5 WBC Westpac
6 FMG Fortescue Minerals Group
7 APX Appen
8 NAB National Australia Bank
9 VDHG VDHIGHGROW/ETF
10 VGS VINTL/ETF

 

Sales
Code Security
1 BBOZ BETA SBEAR/FD
2 FMG Fortescue Minerals Group
3 APT Afterpay
4 APX Appen
5 WBC Westpac
6 AAA BETACASH/ETF
7 TLS Telstra
8 BHP BHP
9 A2M A2 Milk
10 ANZ Australia and New Zealand Banking Group

 

A closer look at the data shows a significant increase in trading volume related to ‘bearish’ bets. Trading volume in the Australian Equities Strong Bear Fund (ASX: BBOZ) grew significantly last month, more than double that of October. However, this trading volume wasn’t only investors buying the ETF and betting on a market fall. In fact, BBOZ was the most-sold stock by value during November, indicating many investors closed their positions. With that said, the value of BBOZ purchased on the ASX still outweighed the selling volume.

As alluded to earlier, ANZ (ASX: ANZ) was a beneficiary of trading volume moving away from Westpac. The value of ANZ shares bought in November by our members climbed by almost 50%, while the value of its shares sold fell sharply. SelfWealth members also invested more heavily in NAB (ASX: NAB), which jumped into 8th position as the most-bought stock. It ensured that Westpac (ASX: WBC) climbed from the 28th most-sold stock via the SelfWealth share trading platform in October to the 5th most-sold stock during November.

A2 Milk (ASX: A2M) and BetaShares Australian High Interest Cash ETF (ASX: AAA) also saw a spike in selling volume last month. After an initial slip, the price of A2M shares actually surged over the month, suggesting some members may have sold to take profits. The appearance of AAA in 6th position among the most-sold stocks could due to a ‘risk-on’ mentality in the market right now.

 

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

 

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SelfWealth Ltd ACN 52 154 324 428 (“SelfWealth”) (Australian Financial Services Licence Number 421789). The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice.

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