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Trading update

Trading volumes have been flat across the market as we head into the Easter break, with the ASX200 closing up half a percent on the preceding 5 days. Investors look forward to substantial dividends hitting their accounts over the coming weeks which could lead to a lift in buying.

Airtasker (ART) has attracted significant interest since its listing a little over a week ago. Initially spiking to $1.96, the price has fallen to a little above $1, bringing investors to the party who had previously feared they’d missed the run. Overall the stock is a buy among Nabtrade investors, but a significant proportion have traded the stock in its first week, with a low propensity to buy and hold. Average trade sizes have doubled since the first day of listing, but remain small.

Fortescue (FMG) remains the most traded stock on nabtrade by value and volume, as it has fallen from its highs of over $26 in January to around $20. High value investors are happy to trade the stock through volatility driven by iron ore price movements, while a core group of investors are committed holders. Net selling in BHP (BHP) and Rio (RIO) made the top 20, while Newcrest (NCM) has traded on unusually high volumes over the last two weeks, with net selling on Thursday. Lynas (LYC) has also been sold off after a spate of recent buying on weakness.

CSL (CSL) has been a strong buy through its recent weakness below $250, however volumes thinned as the weakness persisted. As the price came back above $260, we saw some selling, however the buyers have returned this week as the price remains substantially off its highs. Despite a high and potentially rising Australian dollar and Covid pressures, most believe the business remains strong and anticipate the long term growth in earnings will continue, resulting in a return to former strength.

After much recent selling, Afterpay (APT) has swung back to the buys, while Zip Co (Z1P) was sold off on Thursday. Commonwealth Bank (CBA) was a sell, while the remaining banks were a buy; Suncorp (SUN) has returned to the top 20 as a sell. AMP (AMP) announced the departure of current CEO Francesco De Ferrari and a new CEO on Thursday (following a denial earlier in the week), and bounced nearly 5%; neither nabtrade investors were not tempted to buy or sell.

On international markets, Volkswagon (VOW.DE) was a small buy, hopefully unrelated to the company’s spurious 1 April announcement of a ‘rebrand’ to become ‘Voltswagon’, a fully electric vehicle manufacturer. Tesla (TSLA.US) and NIO (NIO.US), which both do specialise in the production of electric vehicles, remain at the top of the trade list; Nio has been sold off while parcel sizes are less than a third of those in Tesla, which remains a buy. Zoom Video (ZM.US) and Teladoc (TDOC.US), both popular lockdown buys, were sold off on reopening hopes.

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