Key takeaways:

• Continuing a running theme, the Selfwealth community backed shares that have largely fallen out of favour with the market at large, many of which are trading at recent lows

As investors grew anxious about the path for monetary tightening in the US, the local share market also encountered modest selling pressure, particularly across growth segments of the index.

By the end of September, the ASX 200 shed 3.5%, with the benchmark at one stage trading at a five-and-a-half month low.

Just about every ASX sector was in the red last month, with none faring worse than the information technology and real estate sectors. On the other hand, energy stocks were largely insulated from the sell-off.

Here are the popular names from September’s trading action.

What are the most popular ASX shares and ETFs?

While the collective value of holdings in Commonwealth Bank (ASX: CBA) and BHP (ASX: BHP) both shrunk by a mid single-digit percentage last month, Westpac (ASX: WBC) edged closer towards the pair. 

In fact, Westpac was one of only a few stocks in the top 20 last month where the value of all holdings managed to increase, with Selfwealth members providing strong buying support to comfortably offset the stock’s monthly decline of 3.6%. That may have something to do with recent data suggesting the bank is gaining a modest market share from CBA.

Sticking with the banks, and ANZ (ASX: ANZ) swapped places with its peer in National Australia Bank (ASX: NAB) to take sixth place among the most held ASX stocks on the Selfwealth platform. While the pair are certainly popular, holdings are still tens of millions of dollars behind their more popular rivals mentioned above, which likely stems from the relative size and valuation appeal in said names.

Pilbara Minerals (ASX: PLS) and Liontown Resources (ASX: LTR) encountered a different treatment, despite both being stalwarts of the lithium sector. PLS holdings recorded the largest decrease of any name in the top 20 as market enthusiasm for the sector was tested, despite strong interest among Selfwealth members. Liontown was helped by a revised $6.6 billion takeover bid from US giant Albemarle, which propped up the producer’s share price. By the end of the month, LTR holdings on the Selfwealth platform had swelled by 8.2%.

And last but not least, Whitehaven Coal (ASX: WHC) crept into the list courtesy of a strong showing in September. The stock gained 16.8% throughout the month, with coal prices rebounding to a multi-month high amid a broad-based rally in energy prices caused by ongoing shifts in the global energy mix.

ASX Companies

1. Commonwealth Bank

2. BHP

3. Westpac

4. Neuren Pharmaceuticals

5. CSL

6. Australia and New Zealand Banking Group

7. National Australia Bank

8. Macquarie Group

9. Australian Foundation Inv

10. Fortescue Metals Group

11. Woodside Energy

12. Pilbara Minerals

13. Wesfarmers

14. Liontown Resources

15. Telstra

16. Rio Tinto

17. Washington H. Soul Pattinson and Co

18. Argo Investments

19. Woolworths

20. Whitehaven Coal

The Betashares Australian High Interest Cash ETF (ASX: AAA) was the major mover in the ETF space, leapfrogging a number of names to land in ninth spot. This fund, which offers exposure to cash, likely grew in popularity as investors mulled the prospect of whether further rate hikes are coming. As it stands, a number of economists predict the RBA may hike at least one more time before wrapping up its monetary tightening campaign.

ASX ETFs

1. Vanguard Australian Shares Index ETF

2. Vanguard MSCI Index International Shares ETF

3. Vanguard Diversified High Growth Index ETF

4. iShares S&P 500 ETF

5. BetaShares Australia 200 ETF

6. Vanguard U.S. Total Market Shares Index ETF

7. BetaShares Nasdaq 100 ETF

8. Vanguard Australian Shares High Yield ETF

9. BetaShares Australian High Interest Cash ETF

10. Vanguard All-World ex-U.S. Shares Index ETF

ASX share trading activity

Selfwealth members continue to back names that the rest of the broader market have largely turned against, with higher trading interest, and sustained buying support for the likes of Qantas (ASX: QAN) and Resmed (ASX: RMD).

Qantas was engulfed in all sorts of negative publicity following news the national carrier is being taken to court by the ACCC in relation to selling tickets for flights that it had already cancelled. 

As far as Resmed, the medical device company faced questions around indirect competition following recent developments where diabetes drugs have gained attention for being potential agents for weight loss, and in turn, reducing sleep apnea. 

Nonetheless, buying activity was the overwhelming behaviour on show in these stocks, representing more than two-thirds of all activity in Qantas, and over 80% of trades in Resmed. At the same time, the Selfwealth community also bought the dip in popular names like Pilbara Minerals, as well as CSL (ASX: CSL), which touched a fresh 18-month low as investors opted to retreat from the health care sector.

Other under-fire stocks that fell into the same category included Core Lithium (ASX: CXO), Coles (ASX: COL), Sayona Mining (ASX: SYA), and Novonix (ASX: NVX), where investors were largely prepared to buy the dip. In each of these stocks, buy trades represented more than two-thirds of all trades on the Selfwealth platform, with investors clearly eyeing turnarounds for these names.

Top 20 stocks by Trade Number, with Buy-Sell Ratio (%)

1. Pilbara Minerals 63.7%

2. BHP 52.9%

3. Fortescue Metals 51.1%

4. Qantas 68.9%

5. Resmed 84.7%

6. CSL 77.5%

7. Macquarie Group 66.7%

8. Whitehaven Coal 45.0%

9. Core Lithium 67.7%

10. Westpac 62.7%

11. Woodside Energy 49.5%

12. Coles 78.4%

13. ANZ 51.3%

14. Yancoal 54.0%

15. Sayona Mining 67.5%

16. Paladin Energy 50.4%

17. Leo Lithium 50.6%

18. Novonix 62.2%

19. Australian Foundation Investment Co 72.8%

20. Rio Tinto 36.7%

Vanguard MSCI Index International Shares ETF (ASX: VGS) moved one spot higher to second position among the most traded ETFs. It also drew the equal highest buy-to-sell ratio of any ASX-listed ETF.

With the Ishares S&P 500 ETF (ASX: IVV), BetaShares Nasdaq 100 ETF (ASX: NDQ), and Vanguard U.S. Total Market Shares Index ETF (ASX: VTS) each commanding a notably higher buy-to-sell ratio than the month prior, the data suggests that Selfwealth members were looking to capitalise upon weaker prices for US equities.

The Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) also made a reappearance in light of market volatility, with traders harnessing the fund’s leverage to maximise their short-term trades betting on where the market may head next.

Top 10 ETFs by Trade Number, with Buy-Sell Ratio (%)

1. Vanguard Australian Shares Index ETF 86.0%

2. Vanguard MSCI Index International Shares ETF 88.5%

3. Vanguard Diversified High Growth Index ETF 85.1%

4. iShares S&P 500 ETF 88.5%

5. BetaShares Nasdaq 100 ETF 77.9%

6. BetaShares Australia 200 ETF 85.3%

7. BetaShares Geared Australian Equity (Hedge Fund) 62.6%

8. Vanguard U.S. Total Market Shares Index ETF 79.6%

9. BetaShares Diversified All Growth ETF 88.4%

10. Australian Equities Strong Bear Hedge Fund 50.6%

As many as four geared ETFs tracking the stock market were in the top 10 securities with the greatest money flow in September, including Betashares Geared Australian Equity Fund (ASX: GEAR), Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS), Australian Equities Strong Bear Hedge Fund, and ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS). 

With markets touching multi-month lows, it is becoming apparent that diverging views are forming as to whether shares face a tough time over the coming months, or if this recent bout of volatility is a period of recalibration for the market at large.

Further down the list, there were also some movements in the tech space, with names such as WiseTech Global (ASX: WTC) and Block (ASX: SQ2) making a rare appearance among the stocks with the highest money flow for the month. Ranking 18th and 20th respectively, capital flow in and out of these names was roughly split down the middle, but overall interest was higher than months gone by thanks to the tech sell-off in the US.

Top 20 securities by Trade Value, with Buy-Sell Ratio (%)

1. Betashares Geared Australian Equity Fund 55.4%

2. BHP 39.6%

3. Global X Ultra Long Nasdaq 100 Hedge Fund 49.0%

4. Fortescue Metals Group 49.8%

5. Betashares Australian Equities Strong Bear Hedge Fund 48.1%

6. Pilbara Minerals 49.8%

7. Vanguard Australian Shares Index ETF 77.1%

8. ETFS Ultra Short Nasdaq 100 Hedge Fund 49.1%

9. Westpac 59.2%

10. Macquarie Group 58.2%

11. Betashares Australian High Interest Cash ETF 69.5%

12. Commonwealth Bank 44.5%

13. ANZ 66.4%

14. Qantas 57.1%

15. iShares S&P 500 ETF 60.5%

16. CSL 61.5%

17. Whitehaven Coal 32.4%

18. WiseTech Global 50.3%

19. Woodside Energy 45.8%

20. Block 52.6%

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