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How nabtraders are getting their lithium fix

The ASX200 was up just 10 points to close at 7342 on Thursday, after a choppy session on Wall Street. The Australian market is now down 1.77% over 5 days, but is holding ground over the month. Investors continue to weigh tens of thousands of daily Covid cases and the threat of looming inflation against better than expected local employment numbers and 

The iron ore price continues to provide tailwinds for two of nabtrade’s most favoured stocks, with Fortescue Metals Group (FMG) and BHP (BHP) continuing to top the most traded table. Fortescue bounced more than 4.5% on Thursday in line with the iron ore price surge overnight, while BHP was up more than 3%. BHP faces voting on its proposed delisting from the London Stock Exchange, and gave a production update yesterday that left its production and cost guidance for FY22 largely unchanged. Fortescue saw heavily selling on its share price rally, while BHP has been mixed. 

Also in materials, lithium producer Pilbara Minerals (PLS) remains popular, with buying over 90% over total trade value. Lithium hopeful Core Lithium (CXO) is also a strong buy, as is Allkem Ltd (AKE). Allkem was formerly Orocobre, which merged with Galaxy Resources. The merged entity has been on a strong run, and is up over 20% over the last month. 

 

Allkem (AKE)

Source: nabtrade

 

The big trading stock in recent weeks has been Brainchip Holdings (BRN), which is turning over huge volumes on the ASX and increased 300%  since November. The artificial intelligence sector (AI) is attracting attention from investors; here nabtrade’s active traders are seeking short term gains in a hot part of the market.

 

Brainchip Holdings (BRN)

Source: nabtrade

 

On international markets, the tech heavy Nasdaq is now in a technical correction, down more than 10% as investors digest the prospect of substantially higher interest rates and their impact on the multiples of high growth tech companies. Tesla (TSLA.US) shares remain a hot favourite, this week among high value investors, with a 90%+ buy and an average trade value of over $AUD100,000. Payments giant Block (formerly Square, SQ.US) has completed its buyout of Australian buy-now pay-later favourite Afterpay (formerly APT, now SQ2.ASX). Nabtraders have been trimming the US listed holding, selling 96%. 

 

 

Analysis as at 20 January 2022. This information has been provided by WealthHub Securities Ltd the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB). Whilst all reasonable care has been taken by WealthHub Securities in reviewing this material, this content does not represent the view or opinions of WealthHub Securities. Any statements as to past performance do not represent future performance. Any advice contained in the Information has been prepared by WealthHub Securities without taking into account your objectives, financial situation or needs. Before acting on any such advice, we recommend that you consider whether it is appropriate for your circumstances. This article does not reflect the views of WealthHub Securities Limited.

About the author
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Gemma Dale , nabtrade

Gemma Dale is Director of SMSF and Investor Behaviour at nabtrade. She is the host of the Your Wealth podcast, a fortnightly podcast for investors, featuring insights and updates from markets and finance experts across a range of topics. She provides regular market and finance commentary on ausbiz and in other media including AFR, the Australian, ABC and commercial tv and radio. Gemma was previously the Head of SMSF Solutions for nab, and the Head of Technical Services for MLC, where she led a team of specialists providing advice to advisers and their clients on SMSF, super, tax, social security and aged care.

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Gemma Dale

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