The ASX quickly shrugged off a sluggish start to the new financial year to finish the month 2.9% higher. That meant the benchmark index hit a five-month high as investors expressed optimism in the battle to drive inflation lower.

Energy stocks were a clear winner in July, but the information technology, financials, and consumer discretionary sectors also played a supporting role. On the other hand, health stocks capped the market’s gains.

Here is a recap of community trading action from July.

What are the most popular ASX shares and ETFs?

The top five most popular stocks across the Selfwealth community were unchanged last month. In descending order, they were Commonwealth Bank (ASX: CBA), Neuren Pharmaceuticals (ASX: NEU), BHP (ASX: BHP), Westpac (ASX: WBC), and CSL (ASX: CSL). 

Each name in the top five recorded a modest single-digit percentage increase in value. Capital flowed steadily into BHP and CSL, the banks benefitted from their share price gains, while Nueren announced that it has expanded the agreement for its Trofinetide product with Acadia Pharmaceuticals to a worldwide licence. The company will receive US$100 million upfront, and the potential for hundreds of millions of dollars in royalties.

Meanwhile, National Australia Bank (ASX: NAB) and ANZ (ASX: ANZ) swapped positions in sixth and seventh respectively. While the latter actually recorded a higher share price gain across the month, rising 8.6% versus a gain of 7.8% for NAB, the collective value of ANZ holdings actually fell by 0.7% last month. 

It was clear that ANZ shareholders in the Selfwealth community took profits amid the recent rally. One of the potential reasons for this is that ANZ is awaiting a decision from the ACCC with regards to its proposed acquisition of Suncorp Bank. However, other banks also saw a net outflow of holdings masked by rising share prices.

On the back of a strong showing from the energy sector, Woodside Energy (ASX: WDS) climbed two spots into 10th place. The stock gained more than 10% throughout July, which underpinned an increase in the value of WDS holdings across the Selfwealth community. Crude oil prices leapt higher last month, gaining as much as US$10 a barrel. At the same time, the company reaffirmed its full-year production guidance, drawing widespread buying interest. 

Lithium duo Pilbara Minerals (ASX: PLS) and Liontown Resources (ASX: LTR) lost ground as investors asked some tough questions of the segment in light of developments among peers. As a growing number of miners warned about inflationary costs, and even production setbacks, the pair were among just a small selection of names in the top 20 where community holdings were cut.

With the single-largest increase in holdings by value among any top 20 name, Flight Centre (ASX: FLT) cemented its position among the most popular stocks after a rocky period the month prior. Last month’s positive display was attributable to an upgrade of the company’s earnings outlook. With corporate travel back in full swing, the business delivered record total transaction value (TTV).

ASX StockCompany1CBACommonwealth Bank2NEUNeuren Pharmaceuticals3BHPBHP4WBCWestpac5CSLCSL6NABNational Australia Bank7ANZAustralia and New Zealand Banking Group8MQGMacquarie Group9AFIAustralian Foundation Inv10WDSWoodside Energy11FMGFortescue Metals Group12PLSPilbara Minerals13WESWesfarmers14LTRLiontown Resources15TLSTelstra16RIORio Tinto17SOLWashington H. Soul Pattinson and Co18WOWWoolworths19ARGArgo Investments20FLTFlight Centre

In terms of ETFs, the Vanguard MSCI Index International Shares ETF (ASX: VGS) and the Diversified High Growth Index ETF (ASX: VDHG) continued their game of musical chairs last month, swapping positions within the top three. With global markets rallying over the course of the month, ETF holdings increased right across the board.

ASX ETFsCompany1VASVanguard Australian Shares Index ETF2VDHGVanguard Diversified High Growth Index ETF3VGSVanguard MSCI Index International Shares ETF4IVVIshares S&P 500 ETF5A200BetaShares Australia 200 ETF6VTSVanguard U.S. Total Market Shares Index ETF7NDQBetaShares Nasdaq 100 ETF8VHYVanguard Australian Shares High Yield ETF9VEUVanguard All-World ex-U.S. Shares Index ETF10DHHFBetaShares Diversified All Growth ETF

ASX share trading activity

The buy-to-sell ratio for trades in each of the ‘Big Four’ was below 50%, indicating that some momentum has shifted away from the bank sector after a strong run over the last two months. Roughly speaking, approximately six out of every ten trades in this cohort, which consists of Westpac, ANZ, NAB, and Commonwealth Bank, were ‘sell’ orders.

Elsewhere, battery minerals trades remain a popular favourite. The total number of trades in Pilbara Minerals grew 33% month-over-month, while the likes of Core Lithium (ASX: CXO) and Latin Resources (ASX: LRS) also recorded a big double-digit percentage jump. Ironically, the CXO share price tumbled after its quarterly guidance disappointed the market, including a downbeat production outlook.

Also peppered throughout the top 20 were additions like Sayona Mining (ASX: SYA) and Allkem (ASX: AKE), with strong buy-to-sell ratios clearly highlighting the persistent enthusiasm for lithium exposure, even in the face of price weakness.

With CSL shares touching a fresh 52-week low last month, Selfwealth members also took the opportunity to load up their portfolios with the biotech giant. More than three out of every four trades involving CSL were ‘buy’ orders. That ranks as the highest of any ASX-listed company, and in fact, is comparable with a number of ETFs where activity usually skews overwhelmingly towards buying due to the popularity of the ‘buy-and-hold’ strategy.

Other names that featured in the top 20 trades included mining names such as South32 (ASX: S32), Whitehaven Coal (ASX: WHC), and Northern Star Resources (ASX: NST).

Top 20 stocks by tradesCode Security

Buy-Sell Ratio

1. PLS Pilbara Minerals 56.5%

2. BHP BHP 56.0%

3. FMG Fortescue Metals 51.1%

4. CSL CSL 77.9%

5. CXO Core Lithium 59.2%

6. MQG Macquarie Group 60.2%

7. ANZ ANZ 37.5%

8. LRS Latin Resources 53.5%

9. WBC Westpac 42.4%

10. WDS Woodside Energy 35.3%

11. CBA Commonwealth Bank 41.3%

12. S32 South32 61.0%

13. SYA Sayona Mining 71.0%

14. FLT Flight Centre 38.1%

15. WHC Whitehaven Coal  59.3%

16. NST Northern Star Resources 55.8%

17. AKE Allkem 64.9%

18. NAB National Australia Bank 38.9%

19. RIO Rio Tinto 64.1%

20. QAN Qantas 36.4%

Last month saw strong buying conviction for non-leveraged ETFs offering exposure to the Australian sharemarket, with the BetaShares Australia 200 ETF (ASX: A200) recording the highest buy-to-sell ratio of any fund at 84.9%, and the Vanguard Australian Shares Index ETF (ASX: VAS) not far behind with four out of every five orders being purchases. 

Top 10 ETFs by tradesCode Security

Buy-Sell Ratio

1. VAS Vanguard Australian Shares Index ETF 79.7%

2. VDHG Vanguard Diversified High Growth Index ETF 71.2%

3. VGS Vanguard MSCI Index International Shares ETF 80.1%

4. NDQ BetaShares Nasdaq 100 ETF 75.2%

5. IVV Ishares S&P 500 ETF 83.5%

6. A200 BetaShares Australia 200 ETF 84.9%

7. DHHF BetaShares Diversified All Growth ETF 79.0%

8. VTS Vanguard U.S. Total Market Shares Index ETF 70.7%

9. GEAR BetaShares Geared Australian Equity (Hedge Fund) 50.7%

10. BBOZ Australian Equities Strong Bear Hedge Fund 56.3%

When looking at money flow, leveraged ETFs continued attracting the largest amount of capital, with the Betashares Geared Australian Equity Fund (ASX: GEAR) and Betashares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) occupying two of the top five spots.

Providing further context to ANZ’s fall into seventh spot among the most held stocks, more than 75% of money flow in the bank stock last month was driven by selling activity. Not only did sellers outnumber buyers in terms of trades placed, but the value of those sell orders dominated the capital that buyers were prepared to put into the stock. 

Top 20 securities traded by valueCode Security

Buy-Sell Ratio

1. GEAR Betashares Geared Australian Equity Fund 46.7%

2. BHP BHP 51.7%

3. PLS Pilbara Minerals 48.8%

4. WBC Westpac 46.3%

5. BBOZ Betashares Australian Equities Strong Bear Hedge Fund 53.9%

6. FMG Fortescue Metals 51.1%

7. CSL CSL 59.9%

8. VAS Vanguard Australian Shares Index ETF 54.0%

9. MQG Macquarie Group 56.2%

10. CBA Commonwealth Bank 44.1%

11. AAA Betashares Australian High Interest Cash ETF 45.7%

12. LNAS Global X Ultra Long Nasdaq 100 Hedge Fund 51.5%

13. ANZ ANZ 24.3%

14. WHC Whitehaven Coal 53.4%

15. SNA SETFS Ultra Short Nasdaq 100 Hedge Fund 52.9%

16. MIN Mineral Resources 47.2%

17. VGS Vanguard MSCI Index International Shares ETF 52.5%

18. S32 South32 50.1%

19. NST Northern Star Resources 51.6%

20. CXO Core Lithium 53.6%

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