Saxo Group
Summary: As a fascinating third quarter draws to a close, traders across Australia are taking advantage of the 19,000 stocks and 3,000 ETFs available to trade at Saxo Markets. Following a second quarter that was marked by white-hot economic growth in consumer markets, the picture from Q3 has been a little more mixed.
As growth begins to slow and demand continues to outstrip supply in various industries, we have seen a range of winners and losers. Energy markets are in disarray, the threat of inflation draws ever closer, and consumers are still spending like it's going out of fashion.
To help you make sense of what this all means for markets, we have compiled a list of this month's ten most traded stocks by our Australian clients.
As is often the case for this time of year, Apple has experienced a very busy third quarter indeed. Undoubtedly the biggest event on the calendar was the release of the iPhone 13 Pro and iPhone 13 Max smartphones on 14 September, with many traders undoubtedly trying to anticipate by opening a buy position on Apple stock.
However, the release of these new products had a muted effect on Apple stock, with the price actually falling slightly in the days following. Some of this might be due to the fact that the 13 series is the most expensive ever released by Apple, with the top-end model costing more than $2000AUD.
Other factors may also be afoot, not least the fact that Australian regulators have firmly set their sights on the US tech giant, leading to speculation that Apple may soon fall afoul of planned pro-competition laws that will shake up big tech. It may be the case that Apple stock is simply cooling off after a white-hot few months, with its stock price having risen more than 20% since June.
Once again, the Australian iron ore giant FMG has remained one of the top stock picks for our AUS clients. Traders were no doubt buoyed by news from August when FMG announced record profits growth and its highest ever dividend ($2.11AUD per share), driven largely by consistently high iron ore prices and strong demand from China.
However, things seem to be changing directions for FMG. The company remains upbeat and is continuing to make significant investments in mining operations across Australia. However, the share price has fallen by around 22% since the beginning of the month, from just over $22 to around $15 per share.
Much of this has been driven by slumping iron prices, the result of dampening demand from China amid ongoing crises in the construction sector. Whether price trends turn around in the immediate future will depend on China's response.
Anyone who took a short position against BHP Group in September would have felt vindicated, given how much the share price has dropped in recent weeks. The BHP share price has fallen by more than 15% in September, due partly to the same fall in iron ore prices that is weighing down on the FMG share price.
The main factors in the declining share price are BHP's announcement of major investments in recent weeks that will add to its short-term debts, including its huge expansion of potash mining operations and its ongoing merger deal with Woodside.
Furthermore, the continued Chinese ban on Australian coal products is likely to be felt for the foreseeable future. Nonetheless, BHP's continued investments in green energy production could pay off in the longer term.
As one of the world's most consistently popular stock picks and brand names, it should come as no surprise that Tesla shares continue to be in high demand among our Australian clients. Tesla stock has continued its year-long winning streak, with the price rising by another 5% in September.
The world's largest producer of electric vehicles has enjoyed a successful and vibrant month, with the rollout of its Self-Driving Beta software that allows customers to experience autonomous driving for the first time.
Meanwhile, Tesla is continuing to enjoy strong sales in all markets. Expect even more frenzied stock activity ahead of Tesla's highly-anticipated quarterly earnings report, to be announced at the company's Austin, TX Gigafactory on October 7.
Amazon has continued to go from strength to strength in recent months, with few signs of slowing down. Despite its stock price dropping to a five-month low of $3187.75 on August 19, things have turned around since then, with the Amazon share price surpassing $3500 by 8 September.
It is no surprise that Amazon stock remains one of the most popular picks for Australian traders, given how busy it has been in the country. Amazon's Australian arm has reported doing a roaring trade in September, driven largely by continued lockdowns in many of the most popular regions of the country.
The company is also continuing on its expansion pledges and is in the process of hiring 1,000 new workers across the country.
Unsurprisingly, Microsoft stock has proven consistently popular among our customers. One of the largest tech companies in the world, Microsoft has gone from strength to strength in recent years, capturing a huge chunk of the global cloud computing market and expanding its vast network of data centers. Its share price has skyrocketed since 2020 and the release of recent hit products such as Xbox Series X and the Surface 4 Laptop shows that this is a company that isn't going away anytime soon.
This immensely popular ETF, which tracks the performance of the S&P/ASX 300 Index, continues to be a top pick among our Australian investors. With more than $9.6 billion in the fund itself, the ETF has grown more than $17% in the year to date.
Alibaba Group, one of the world's largest e-commerce giants, continued its year-long share price decline throughout September. Once more, sentiment is being weighed down by the continued tightening of Chinese regulations around tech giants. This includes plans to compel companies like Alibaba to donate billions of dollars to the government's Common Prosperity Fund.
The Invesco QQQ Trust, which tracks the NASDAQ-100 Index of non-financial stocks, remains one of our most popular ETFs. It continues to be one of the single best performing large-cap growth funds on the market right now, with stellar growth throughout the year being driven by the dominance of US tech stocks.
The Australian flat steel producer Bluescope Steel is one of Australia's manufacturing giants and remains a highly popular stock pick for our AUS investors. The Bluescope share price hit an all-time high on August 16, largely buoyed by skyrocketing global steel prices. This likely drove a lot of buying activity in September, despite the stock price falling significantly from its high towards the end of September.
Disclaimer: All trading carries risk. Any past performance stated is not an indication of future performance.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.