BHP Stock – These are the stocks investors are taking profits on
With the ASX200 closing above 7300 points on Thursday and up
over half a percent for the prior five days, investors should be cheering a new
record high and exceptional portfolio performance since the Covid lows of 2020.
Many, however, are concerned about pockets of overvaluation, and nabtrade cash
balances continue to climb to their highest levels on record despite interest
rates well below 1%. In relatively subdued trading, investors are taking
profits and rebalancing their portfolios prior to 30 June, and are finding few
bargains to tempt their wallets.
Bank shares have been heavily sold with investors taking
profits as they climb to post Covid highs. C(BA) shares (C(BA)) have held
above $100, leading to trimming across the portfolio from investors sitting on
healthy profits. Nab (nab) bucked the trend when Austrac’s concerns
about money-laundering and compliance procedures made the front pages, leading
to a 3% fall in the share price on Monday, and some buying. Over 30% of trades
were sells, indicating a lower level of conviction than would usually be
elicited by a substantial fall in the price of one of the big four. Nab remains
nabtrade’s most held stock. Macquarie (MQG) remains mixed.
CSL (CSL) hit a six-month high of nearly $299 in
intraday trade on Thursday, closing at $295.21, well above its lows below $250
earlier in the year. A strong buy during 2020 and during the lows of 2021, many
investors have taken the opportunity to sell into strength this week. While
Cochlear (COH) goes from strength to strength and ResMed (RMD)
was also strong this week, up nearly 4% on Thursday, investors otherwise stayed
away from the healthcare sector.
Fortescue Metals (FMG) is sitting below last month’s
high and well below its peak in January, but is up over 50% year on year.
Investors have been taking profits. BHP (BHP) has been mixed while Rio
Tinto (RIO) has failed to make the top 20 most traded stocks.
Followers of the tech space have had plenty to keep
themselves busy this week. Altium (ALU) received an indicative non-binding
offer from US software giant Autodesk Inc (ADSK.US), which sent shares
soaring 39%. They fell 7.5% on Wednesday but gave plenty of investors the
opportunity to take profits, with the stock a 97% sell on both Monday and
Tuesday. Autodesk’s offer is below the stock’s 52 week high, leading the board
to reject the offer. Market software provider Iress (IRS) was the
subject of rumours that investment bank Barrenjoey was seeking merger and
acquisition opportunities for the company; the share price bounced over 18%,
leading to heavy selling on nabtrade. Investors bought recently beaten up tech
stocks including Appen (APX) and EML Payments (EML).
In international markets, the ‘meme’ stocks continue to
attract punters, with GameStop (GME.US) and AMC (AMC.US) Entertainment
fans congregating on Reddit forums to talk up their favoured stocks. Blackberry
(BB.US) has joined the fray, having jumped from $8 to $25 in early February
when ‘stonks’ fervour was at its peak, before falling back to below $8. This
week it doubled to over $16. While Tesla ((TSLA).US) remains popular,
electric vehicle manufacturers Workhorse (WKHS.US) and Nio (NIO.US)
were sold down on recent strength. The EV sector remains well off its highs of