BHP Stock – What stocks were pushed to the top of the most traded list by bargain hunters?
The ASX200 lost a little ground on Thursday, but is up three
quarters of a percent over five days and is holding above 7300 points. This
remains above the market’s pre Covid peak and represents the returning strength
of the economy, although recent lockdowns in Victoria and three community Covid
cases in NSW remind investors that downside risks could return.
While cash levels remain at close to record highs,
indicating nervousness on behalf of investors, any fall in popular stocks can
bring out the bargain hunters. Coles (COL) shares were a strong buy on
Thursday when the company’s strategy update disappointed the market and the
shares fell nearly 4.5%. At $16.29 they remain above their 52-week low, reached
in late February, and are largely flat over twelve months. Woolworths (WOW)
were largely moved and are up nearly 20% over the year.
CSL (CSL) fell below $250 as recently as March, at
which point it was a strong buy, but has rallied strongly since, closing
Thursday at over $302. Investors were happy to take profits, which led to heavy
selling on nabtrade, although the stock remains well off its pre Covid highs of
The action in Coles and CSL was enough to push investor
favourites nab (NAB) and Fortescue Metals (FMG) off the top spot
on Thursday. Bank shares continue to be subject to widespread profit taking,
with nab leading, and Bank of Queensland (BOQ) ahead of Commonwealth
Bank (C(BA)). C(BA) has consolidated its position above $100, surging to
$105.91, while BOQ rose 3.3% on Thursday to close shortly off its 52-week high.
In the materials sector, FMG continues to attract traders
and investors; Thursday’s 1.5% fall led to heavy buying. Gold miners suffered
on the back of small falls in the gold price and the Fed’s interest rate
outlook. Gold explorer and producer Northern Star (NST) lost 7.57% and was
a strong buy; Newcrest Mining (NCM) suffered a smaller fall and was
lower down the list while still a buy. BHP (BHP) and Rio Tinto (RIO)
were also bought on slight weakness.
In the energy sector, Brent crude prices are closing on a multi-year
high, leading to profit taking in Woodside Petroleum (WPL).
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, although Tesla ((TSLA).US), led by the ultimate cult entrepreneur,
has been mixed after falling from highs of $900 to around $600. The stock is
still up 200% year on year following a 5:1 stock split and the largest ever
inclusion in the S&P500. More conservative investors continue to buy the US
listed Vanguard S&P500 ETF, and Amazon shares (AMZN.NAS), which are
up a relatively modest 30% year on year and have largely tracked sideways since