Key takeaways:

• Tech shares surged higher in May, but that exuberance wasn't matched by the Selfwealth community

• Instead, bank stocks were the popular trade amid half-year results from the sector

Tech stocks delivered significant returns during May, but with the sector representing just a small weight of the local share market, the ASX 200 still shed 3% across the course of the month.

That was largely due to the performance of the index-heavy bank and iron ore stocks, as well as weakness across consumer names. In fact, the ASX 20, representing the top 20 ASX-listed stocks by market cap, was down nearly 4% in May.

We take a closer look at the most actively traded shares from recent weeks.

What are the most popular ASX shares and ETFs?

Neuren Pharmaceuticals (ASX: NEU) remains the most popular holding in the Selfwealth community by value. Its lead ahead of the rest of the pack widened for the second straight month, with growth in all NEU holdings outpacing that of second-place Commonwealth Bank (ASX: CBA). In third position, CSL (ASX: CSL) gained one spot, with the biotech giant enjoying a positive month like most of its healthcare peers. The stock has long been a favourite among Selfwealth members, and after slipping out of the top three for the first time back in April, the stock wasted no time retaking its place on the podium. Selfwealth members were net buyers of CSL in May, with collective holdings up 2.9%, versus a 1.9% rise in the CSL share price. On the other hand, the value of collective holdings in iron ore names decreased month-over-month. BHP (ASX: BHP), Fortescue Metals Group (ASX: FMG), and Rio Tinto (ASX: RIO) each recorded a net reduction throughout May, which was largely attributable to shaky iron ore prices. A patchy economic recovery in China, the world second largest economy, and major iron ore buyer, weighed on the trio share prices. Shares in telco giant Telstra (ASX: TLS) reached a fresh 52-week high, achieving the same feat for the second month in a row. That was enough to see the stock move higher into 14th position among the most popular ASX businesses on the Selfwealth platform. It follows a decision by the company to hike its mobile plan prices in response to the inflationary environment. Sliding two places down the list, and arguably one of the laggards for the month, was Wesfarmers (ASX: WES). Shares in the conglomerate slumped by 8.3% throughout the month, and net selling activity resulted in the total value of all WES holdings on the Selfwealth platform finishing the month nearly 11% lower. 

Signs of a slowdown among consumer discretionary retailers might be behind at least some of the stock decline last month. To date, there has been little indication on how Wesfarmers' brands like Kmart, Target, Officeworks, and Bunnings are performing in the face of rate hike pressure.

1. Neuren Pharmaceuticals (ASX: NEU)

2. Commonwealth Bank (ASX: CBA)

3. CSL (ASX: CSL)

4. BHP (ASX: BHP)

5. Westpac (ASX: WBC)

6. ANZ (ASX: ANZ)

7. National Australia Bank (ASX: NAB)

8. Macquarie Group (ASX: MQG)

9. Australian Foundation (ASX: AFI)

10. Fortescue Metals Group (ASX: FMG)

11. Woodside Energy (ASX: WDS)

12. Pilbara Minerals (ASX: PLS)

13. Liontown Resources (ASX: LTR)

14. Telstra (ASX: TLS)

15. Wesfarmers (ASX: WES)

16. Rio Tinto (ASX: RIO)

17. Washington H. Soul Pattinson and Co (ASX: SOL)

18. Woolworths (ASX: WOW)

19. Argo Investments (ASX: ARG)

20. Flight Centre (ASX: FLT)

Among ETFs, the Vanguard Australian Shares High Yield ETF (ASX: VHY) moved one spot higher into eighth position, switching places with the Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU). That move is probably in keeping with the broader uptick in interest for bank stocks, with yields at high levels as bank shares traded at multi-month lows.

1. Vanguard Australian Shares Index ETF (ASX: VAS)

2. Vanguard Diversified High Growth Index ETF (ASX: VDHG)

3. Vanguard MSCI Index International Shares ETF (ASX: VGS)

4. Ishares S&P 500 ETF (ASX: IVV)

5. BetaShares Australia 200 ETF (ASX: A200)

6. Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

7. BetaShares Nasdaq 100 ETF (ASX: NDQ)

8. Vanguard Australian Shares High Yield ETF (ASX: VHY)

9. Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

10. BetaShares Diversified All Growth ETF (ASX: DHHF)

ASX share trading activity

One of the prominent trading themes last month was lithium stocks, continuing a trend that has played out for some time now. Volatility was one of the pressing matters that underpinned trading activity, with most names from the segment roaring out of the blocks during the first half of the month before selling pressure started to build.

And on that note, each of Pilbara Minerals (ASX: PLS), Core Lithium (ASX: CXO), and Lake Resources (ASX: LKE) saw a higher number of sell orders in May as opposed to purchases. It is the first time since we started tracking Selfwealth members' trading activity that all three recorded a buy-to-sell ratio under 50% when featuring among the top 20. Short interest in each of the trio has risen steadily over recent weeks, largely on the back of concerns about the price outlook for lithium. Their peer, Vulcan Energy Resources (ASX: VUL), was also among the most actively traded stocks last month, albeit buyers were the ones that largely stepped up. The stock massively underperformed its peers in May, with the company shedding nearly 40% of its market cap as its ambitious zero-carbon lithium plans still face a number of hurdles. Nonetheless, Selfwealth members are taking a different view, backing the stock as it trades at its lowest level in over two years.

Top 20 stocks by trades Buy-Sell Ratio

1. Vanguard Australian Shares Index ETF 81.7%

2. Vanguard Diversified High Growth Index ETF 74.4%

3. Pilbara Minerals 46.8%

4. Vanguard Msci Index International Shares ETF 73.6%

5. BHP 68.5%

6. National Australia Bank 70.3%

7. Westpac 66.6%

8. iShares S&P 500 ETF 78.4%

9. Fortescue Metals Group 63.4%

10. Betashares Nasdaq 100 ETF 58.4%

11. ANZ 59.0%

12. Core Lithium 43.9%

13. BetaShares Australia 200 ETF 82.6%

14. Macquarie Group 67.7%

15. Lake Resources 47.9%

16. Qantas 43.5%

17. Commonwealth Bank 54.8%

18. Vulcan Energy Resources 69.4%

19. Woodside Energy 44.9%

20. Australian Foundation Investment 76.9%

The Big Four' all made an appearance among the most traded stocks by value, led by Westpac (ASX: WBC), National Australia Bank (ASX: NAB), ANZ (ASX: ANZ), and then Commonwealth Bank (ASX: CBA). Furthermore, buying activity was the driving force for the first three, which was mostly in response to the half-year reports delivered by the trio. 

At the start of the month the banks outlined concerns like competition stifling margin growth, and were sold off sharply in the wake of such commentary. However, despite the negative reception across the market, there was a large uptick in buying activity by Selfwealth members on reporting day, and even the following day. 

While individual tech stocks didn't see all that much additional attention in the wake of the AI frenzy in the US, there was an uptick in indirect trades offering exposure to the theme. The Betashares Nasdaq 100 ETF (ASX: NDQ), ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS), and ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) were all among the securities attracting the most money flow last month. 

The presence of the long and short funds would suggest some differing views among traders on the resilience of the Nasdaq, which recently hit a 13-month high. But as far as long-term investors buying and selling NDQ, nearly three-quarters of money flow was buying activity in May.

And lastly, sellers took charge of stocks like Qantas (ASX: QAN) and Woodside Energy (ASX: WDS), where trade numbers and money flow were skewed towards selling activity. Less than 40% of all money flowing through the pair was attributable to purchases.

This was at odds with the performances of the duo, since both stocks gained ground over the month. It suggests shareholders may have been happy to reduce their exposure in these industries, particularly with the broader market losing ground and other opportunities emerging.

Top 20 stocks traded by Buy-Sell Ratio

1. Westpac 56.5%

2. National Australia Bank 55.9%

3. ANZ 51.0%

4. Fortescue Metals Group 53.6%

5. Pilbara Minerals 44.6%

6. Vanguard Australian Shares Index ETF 54.7%

7. Commonwealth Bank 45.7%

8. BHP 54.8%

9. Macquarie Group 63.6%

10. Vanguard MSCI Index International Shares ETF 52.1%

11. Betashares Australian High Interest Cash ETF 58.6%

12. ETFS Ultra Short Nasdaq 100 Hedge Fund 55.1%

13. Core Lithium 44.0%

14. Bank of Queensland 58.5%

15. ETFS Ultra Long Nasdaq 100 Hedge Fund 50.4%

16. Betashares Nasdaq 100 ETF 72.0%

17. Metrics Master Income Trust 51.5%

18. Qantas 39.6%

19. BBUS U.S Equities Strong Bear Fund 46.6%

20. Woodside Energy 35.0%

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