Key takeaways:

• Selfwealth members' portfolios received a boost thanks to huge gains chalked up by Neuren Pharmaceuticals and Liontown Resources

• Investors embraced buying opportunities in sold-off bank stocks 

As risk-off sentiment returned to the fore in March, the ASX followed financial-heavy share markets lower across the course of the month to the tune of 1.1%.

The banking blow-up, which resulted in the collapse of several banks in the US, and a systemically important financial institution swallowed by its peer in Switzerland, weighed on sentiment.

Financials, real estate, and energy stocks were among the bourse weakest segments, but those losses also provided investors an opportunity to accumulate popular names.

Last month most traded stocks were as follows.

What are the most popular ASX shares and ETFs?

Leapfrogging a host of stocks to become the most held stock by value on the Selfwealth platform, Neuren Pharmaceuticals (ASX: NEU) capped off a remarkable run with a major milestone. The biotech company received FDA approval for Trofinetide, a world-first treatment for Rett syndrome, which is a severe neurological disorder that affects upwards of 350,000 girls and women. 

With FDA approval set to open up a channel of sales royalties and potential milestone payments, the stock received a host of broker upgrades. NEU gained 84.2% throughout March, with the increase in value of holdings across the Selfwealth community largely mirroring that result. This data suggests the majority of shareholders are sticking it out with the company and not in a rush to lock in profits.

Amid last month global banking upheaval, banks were a focal point for share trading activity. Naturally, the Big Five', which includes Macquarie Group (ASX: MQG), all retained their positions inside the top 10 most held shares. Perhaps more interesting was the split in terms of money flow between these names. Westpac (ASX: WBC) and especially ANZ (ASX: ANZ) attracted a net inflow of funds, defying a slump in their share prices. On the other hand, the total value of holdings in each of the other three names declined in tune with their falling share prices, even though buying activity was stronger than usual.Up in 15th position, Liontown Resources (ASX: LTR) was one of the big movers last month, and that was ultimately a reflection of the late-month takeover bid aimed at the firm by global lithium giant Albemarle. 

LTR shares soared nearly 70% in a single session after the company received a $5.5 billion offer, and while management quickly ruled out a deal, a short squeeze fuelled the stock rally. The move resulted in the total value of LTR holdings on the Selfwealth platform surpassing $60 million, despite many investors opting to sell and cash out.

Qantas (ASX: QAN) made a return to the top 20 most held ASX shares across the Selfwealth community, in its first appearance of 2023. Long-term shareholders have been quietly accumulating a position in the company at a time when airlines are still reaping the benefits of high ticket prices. Shares in Australia national carrier reached a three-year high early last month, which likely only strengthened the appeal of the stock to momentum investors. ASX StockCompany1NEUNeuren Pharmaceuticals2CBACommonwealth Bank3BHPBHP4CSLCSL5WBCWestpac6ANZANZ7NABNational Australia Bank8MQGMacquarie Group9AFIAustralian Foundation Inv10FMGFortescue Metals Group11WDSWoodside Energy12PLSPilbara Minerals13TLSTelstra14WESWesfarmers15LTRLiontown Resources16RIORio Tinto17SOLWashington H. Soul Pattinson and Co18WOWWoolworths19ARGArgo Investments20QANQantasOne change among the most popular ETFs sees the Vanguard Australian Shares High Yield ETF (ASX: VHY) swap positions with the Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU). That follows a surge in cash flowing into the yield-oriented fund, with holdings growing 9.3% across the month, in stark contrast with the 0.7% decline in the fund share price.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

Once again, lithium stocks were one of the prominent trading themes across the Selfwealth platform. Although the sector largely faced selling pressure during the first two-thirds of the month, that changed dramatically once the Liontown Resources takeover bid came to light.With that, buying activity picked up across the rest of the segment, particularly for the likes of top 20 stocks such as Pilbara Minerals (ASX: PLS), Core Lithium (ASX: CXO), Lake Resources (ASX: LKE), and even industry peer Lynas Rare Earths (ASX: LYC). 

In fact, traders largely sold out of Liontown Resources on the back of the takeover bid - more than 70% of all LTR trades were sales - rotating into other battery metals stocks where they perhaps feel more upside might be available given the recent dip in prices across the cohort.

The energy sector weighed on the ASX in March, and it was largely a result of crude oil prices reaching a 15-month low. It appears that the downturn has sparked some interest in the better-known oil and gas companies, with Woodside Energy (ASX: WDS) ranking as one of the most traded stocks last month.Elsewhere, momentum traders piled into semiconductor IP company Weebit Nano (ASX: WBT). After reaching an all-time high of more than $9 at the start of March, the stock tumbled dramatically, with a capital raise doing little to arrest the sudden slide. Nonetheless, buyers flocked into the stock through the first third of the month before selling activity started to take hold. By the end of the month, WBT was the 19th most traded stock, featuring for the first time in the top 20. As bank weakness pushed the ASX to a four-and-a-half month low, index-ETFs resonated with the Selfwealth community. Both the Vanguard Australian Shares Index ETF (ASX: VAS) and the BetaShares Australia 200 ETF (ASX: A200) were in the top 20, ranking 1st and 9th respectively, but the pair also commanded a buy-to-sell ratio above 85%, highlighting buyers strength.Top 20 stocks by tradesCode Security

Buy-Sell Ratio

1VASVanguard Australian Shares Index ETF

87.6%

2PLSPilbara Minerals

69.6%

3VDHGVanguard Diversified High Growth Index ETF

79.0%

4VGSVanguard MSCI Index International Shares ETF

80.0%

5BHPBHP

56.8%

6WDSWoodside Energy

57.8%

7ANZANZ

72.3%

8CXOCore Lithium

61.8%

9A200BetaShares Australia 200 ETF

86.0%

10MQGMacquarie Group

77.0%

11IVVIshares S&P 500 ETF

76.8%

12CBACommonwealth Bank

69.4%

13LTRLiontown Resources

28.9%

14WBCWestpac

70.4%

15NDQBetaShares Nasdaq 100 ETF

54.2%

16LKELake Resources

54.9%

17FMGFortescue Metals Group

43.3%

18QANQantas

54.8%

19WBTWeebit Nano

54.8%

20LYCLynas Rare Earths

71.8%

By value, some of last month biggest movements came in the ETF space.

The Betashares Geared Australian Equity Fund (ASX: GEAR) and BBUS U.S Equities Strong Bear Fund (ASX: BBUS) ranked 2nd and 10th respectively, both significantly higher than the month prior. Combined with the Betashares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ), the trio underscore just how split investors were regarding the outlook for financial markets in the wake of renewed volatility brought on by the global banking blow-up.Meanwhile, the Betashares Australian High Interest Cash ETF (ASX: AAA) retains its position as one of the most actively traded stocks by value. While the volume of trades in AAA is still relatively subdued, high-conviction interest in the fund is coming from a cohort of investors that clearly see cash as an appropriate place to be given the effects of recent rate hikes.As we mentioned earlier, Vanguard Australian Shares High Yield ETF was the major mover from the ETF field last month, and a closer look at the trading data paints a clear story. VHY was the 19th most traded security by value in March, a record for this specific name, while nearly three quarters of all money flow tied to the fund was buying activity. This trailed just one other name in the top 20, being the ever-popular Vanguard Australian Shares Index ETF (ASX: VAS).Top 20 stocks traded by valueCode Security

Buy-Sell Ratio

1BHPBHP

48.5%

2GEARBetashares Geared Australian Equity Fund

50.8%

3FMGFortescue Metals Group

44.4%

4PLSPilbara Minerals

51.9%

5CBACommonwealth Bank

53.1%

6BBOZBetashares Australian Equities Strong Bear Hedge Fund

45.3%

7ANZANZ

71.8%

8WBCWestpac

59.6%

9WDSWoodside Energy

62.6%

10BBUSBBUS U.S Equities Strong Bear Fund

51.2%

11AAABetashares Australian High Interest Cash ETF

48.2%

12VASVanguard Australian Shares Index ETF

74.2%

13MQGMacquarie Group

59.7%

14NABNational Australia Bank

51.5%

15LNASETFS Ultra Long Nasdaq 100 Hedge Fund

49.7%

16SNASETFS Ultra Short Nasdaq 100 Hedge Fund

52.0%

17WHCWhitehaven Coal

49.3%

18CSLCSL

51.7%

19VHYVanguard Australian Shares High Yield ETF

73.1%

20LTRLiontown Resources

26.9%

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