Key takeaways: 

• Resources stocks were a popular trade on the Selfwealth platform at a time where BHP launched a major takeover, and as copper, gold, and coal prices climbed higher. 

• Selfwealth investors showed greater buying conviction investing in bank shares and ETFs tracking the local share market.

As central banks grappled with signs that inflation may be accelerating once again, global equities were under pressure last month. Those headwinds flowed through to the local market, where the benchmark S&P/ASX 200 was down 2.9% for the month. 

Energy shares were one of the biggest contributors towards last month’s pull-back, while consumer staples, real estate, and telecommunication shares also led sector declines.  

Amid a backdrop punctuated by interest rate speculation, these were the most popular trades among Selfwealth members in April. 

ASX share trading activity

In line with the energy sector’s sharp decline last month, shares in Woodside (ASX: WDS) finished the month 7.4% lower. That result ensured a more than two-year low for WDS, which coincided with growing concerns among economists about the economic outlook if monetary policy remains restrictive for some time. Nevertheless, WDS was the second-most actively traded share in the Selfwealth community last month, with more than two-thirds of all trades being ‘buys’. 

Up from 11th place to third position, Mesoblast (ASX: MSB) was a popular trade throughout April. Shares in the regenerative medicine company surged nearly 77%, extending the near 90% rally recorded in March.  

The catalyst for the first rally was news that the US Food and Drug Administration advised the company it has provided sufficient data to support the submission of its Biologics License Application for its remestemcel-L treatment for paediatric patients with steroid-refractory acute graft versus host disease. A few short-term traders have since piled into the stock, with volatility a hallmark of trading over recent weeks. 

Alongside Woodside and the iron ore majors, South32 (ASX: S32), Evolution Mining (ASX: EVN), and Whitehaven Coal (ASX: WHC) demonstrated signs of strong trading interest in resources shares. The trio slotted into the top 20, albeit showing varying levels of trading conviction.  

Commodity prices may have played a role, with copper touching a two-year high, gold setting a record high, and coal prices rebounding in April. Shares in S32 were up 19.7% for the month, while EVN and WHC delivered monthly gains of 13.4% and 8.7% respectively. 

Elsewhere, Zip Co (ASX: ZIP), Droneshield (ASX: DRO), and Appen (ASX: APX) maintained their resurgent level of popularity, with the trio in the spotlight after an extended period of modest trading interest. Recent trading has been underpinned by strong share price returns across recent months.

Top 20 shares by trades

For the third time in as many months, there was a marked increase in buying conviction across ASX-listed ETFs. Whilst in previous months this trend was mostly associated with funds tracking US indices, April saw a shift to ETFs focused on the Australian share market. 

For example, the buy-to-sell ratio for the Vanguard Australian Shares Index ETF (ASX: VAS) rose 9.7 percentage points month-over-month, while the Betashares Australia 200 ETF (ASX: A200) recorded a 7.8 percentage point increase compared with the result from March.

Top 10 ETFs by Trades  

Not only the most actively traded share by trade volume, BHP (ASX: BHP) also topped the list in terms of the greatest money flow throughout the month, with around $64 million worth of shares traded. The mining titan made the news as it made a $60 billion takeover offer at London-listed rival Anglo American, which was subsequently rejected. 

Bank shares also enjoyed strong buying support ahead of the segment’s reporting period, and with US-listed peers handing down results over recent weeks. Westpac (ASX: WBC), ANZ (ASX: ANZ), and Commonwealth Bank (ASX: CBA) all recorded a buy-to-sell ratio above 50%, which meant an inflow of funds into these names across the platform. The last time that at least three major banks achieved this feat in the same month was September 2023. 

Making its first-ever appearance among the top 20, Australian integrated commercial and industrial property operator Goodman Group (ASX: GMG) was the 18th most-traded ASX-listed share by value. Although money flow was broadly split down the middle in terms of buying and selling, the broader real estate sector fell 7.8% as bond yields climbed higher and investors assessed the prospect for interest rates to stay higher for longer.

Top 20 securities traded by value 

What are the most popular ASX shares and ETFs?

Leapfrogging both CSL (ASX: CSL) and BHP (ASX: BHP), ‘Big Four’ bank Westpac (ASX: WBC) moved into third place among the most popular holdings on the Selfwealth platform. While WBC shares slipped 0.5% across the month, the value of community holdings in WBC increased by 3% in the lead-up to the major bank’s half-year results, which were subsequently announced in early May. 

Also advancing up the list, Woolworths (ASX: WOW) finished the month in 16th spot. Based on trading sentiment, Selfwealth buyers were largely ‘bullish’ towards the stock, which saw the value of community holdings grow by 3.7%, despite WOW shares shedding 3.8% throughout April. The supermarket giant was in focus due to a Senate inquiry into supermarket prices, which also scrutinised the company’s profits. 

Finally, Qantas (ASX: QAN) returned to the top 20 for the first time since November 2023. The airline’s share price touched an eight-month high in April. The market responded favourably after the company announced an expansion of its Frequent Flyer program, while also launching an on-market share buyback of up to $448 million Qantas shares.

As with the most popular ETF to buy and sell, Vanguard Australian Shares Index ETF (ASX: VAS) also remains the top held ETF by Selfwealth investors, with Vanguard MSCI Index International Shares ETF (ASX:VGS) in close second position. 

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