SelfWealth Trading Trends: October

SelfWealth Trading Trends: October

After a volatile opening to start October, the ASX 200 managed to pare back most of its losses as investor confidence seemingly returned to the fray. By the end of the month, the market was down just 0.4%. 

While not as favourable as the 2% rise in the S&P 500, or the 3.7% gain in the NASDAQ index, the results were largely weighed down by selling pressure on several high-profile technology shares and bank stocks. Let’s take a look at what the SelfWealth community were buying and selling through their SelfWealth trading accounts.

 

Which shares and ETFs were the most held?

Despite coming under strong selling pressure across the month, members appear to be comfortable retaining the Big Four banks in their trading account. Weakness in this sector saw the likes of Westpac (ASX: WBC) drop 4.8%, Commonwealth Bank (ASX: CBA) shed 2.7% and National Australia Bank (ASX: NAB) dip 3.7%.

CSL (ASX: CSL) moved into second place among the most-held shares, in no small part due to its strong performance across October. Shares were up 9.6%, still climbing since delivering its full-year earnings back in mid-August. Long a favourite among ‘defensive’ investors, the value of CSL shares held by our members keeps increasing as it reaches one all-time high after another.

Having shed 19.5% of its market cap during October, Afterpay (ASX: APT) falls down the list of stocks held by members in their trading account. The main cause for the drop was a bearish report from Australian broker UBS, which cited regulatory risks for the buy-now-pay-later segment. 

Another interesting observation was Neuren Pharmaceuticals (ASX: NEU), the smallest stock among the list. With a series of price-sensitive announcements relating to its pharmaceutical pipeline, members who held this stock in their trading account saw it climb 13.4% last month.

 

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

 

In terms of exchange-traded funds, Vanguard ETFs remain a clear favourite among our members, featuring six times among the top ten. Most of these ETFs provide direct exposure to Australian and US stock markets – suggesting investors remain comfortable with the outlook of equity markets – but one notable exception is the Australian Fixed Interest Index ETF (ASX: VAF). Over the last year, this ETF is up 7.7%, one of its best periods since launched in 2012.

 

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 VAF VAUSFI/ETF
10 NDQ BETANASDAQ/ETF

 

Which shares and ETFs were the most traded?

Last month’s data shows that SelfWealth members using their trading account to continue investing in shares, rather than sell shares, remain more prolific. Buy volume significantly outweighed sell volume across all trades with a ratio around 2.5:1. Among the most actively traded shares and ETFs, this disparity narrowed to 1:75:1, though it suggests the ‘bulls’ are still in control.

 

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

 

Sales
Code Security
1 FMG Fortescue Minerals Group
2 APT Afterpay
3 APX Appen
4 ANZ Australia and New Zealand Banking Group
5 TLS Telstra
6 CSL CSL
7 Z1P Zip Co
8 STW SPDR S&P/ASX 200 Fund
9 AAA BETACASH/ETF
10 NAB National Australia Bank

 

While it is no surprise to see members investing in shares in the banking sector, as is a regular occurrence, big tech remains a favoured area for many SelfWealth investors despite the market turning on several favourites. Afterpay and Appen (ASX: APX) both feature among the most bought stocks for October. However, it seems not all of our members are convinced, with both shares also featuring as the second and third-most sold stocks respectively. In the case of Appen, there was actually a net outflow of shares across all trading accounts.

Fortescue Minerals (ASX: FMG) strong run throughout 2019 – up 114.7% – is still drawing more investors to consider investing in shares in the mining giant. At the same time however, it is also the most sold stock by value, with some of our members’ likely taking profits off the table.

Elsewhere, despite overall bullishness of all trading activity, we have seen a slight shift by members to leverage their trading account towards some downside exposure courtesy of the Australian Equities Strong Bear Fund (ASX: BBOZ). With the ASX near its historical peak, it is possible some members are hedging their portfolio at this key juncture.

 

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

 

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