RAIZ INVEST: Trading stays flat across ASX following reporting season

Trading on the Raiz platform was fairly flat this week following the reporting season, which is typical across the ASX. Globally, trading in shares has traditionally been weaker in September, with Australian stocks following the same trend as US trading. AMP recently conducted an analysis that found the US share market is typically at its weakest in September, attributing this to investors selling losing stocks to offset capital gains. The same trend occurs in Australia, with September consistently being the weakest month, regardless of changing patterns. This week on Raiz, there was a 17 per cent drop in total shares traded across the Top 10, with just 41,803 shares traded. The biggest gainer was Vicinity Centres ($VCX), which barely made it into the Top 10, coming in at number 9. It saw a 251 per cent increase in shares traded over the last week, despite its stock price being down 26 per cent over the last 12 months. There have recently been some changes at the executive level, with board member Clive Appleton retiring. In his place, the board has nominated former Vicinity CEO Angus McNaughton to succeed him. The only other notable movement in the Raiz Top 10 was a 45 per cent increase in shares traded for Fortescue Metals Group ($FMG). Like Vicinity, its stock is also down year-to-date, by 46 per cent in Fortescue’s case. Part of this decline is driven by the large drop in iron ore prices, which are fundamental to Fortescue’s business. However, the company remains one of the lowest-cost producers, and broker group RBC believes this will position it well for the year ahead. RBC raised Fortescue to “outperform” and set a price target of $20 per share, an increase of 21 per cent from current levels. Elsewhere in the Raiz Top 10, Pilbara Minerals ($PLS) experienced an 18 per cent dip in shares traded this week. Pilbara continues to be a popular stock, and despite the dip, it still holds its second-place position on the tally board. Its levels remain elevated, but like all miners, its success is closely tied to the price of the product it sells. In Pilbara’s case, that product is lithium, which has not been strong this year. The ETF market picked up some of the slack in the Top 10, with an 8 per cent increase in units traded across the top ten ETFs. The Betashares Global Sustainability Leaders ETF ($ETHI) continues to rise in the ranks with a 33 per cent increase in units traded. Last week, it was ranked third in the top 10 but has now claimed the second spot. Sustainability remains a popular theme among the Raiz audience, with the Russell Investments Australian Responsible Investment ETF ($RARI) holding its fourth position with a 29 per cent increase in units traded. There were no other major changes in the Top 10 for ETFs, with small movements for the remaining eight in the countdown. The Russell Investments Australia Select Corporate Bond ETF ($RCB) continues to be the most positive, even with a 5 per cent dip in units traded this week. The information contained in this email is general information only and does not take into account your financial situation, objectives or needs. Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815). PDS and TMD are available on the Raiz Invest website and App. You should read and consider those documents before deciding whether, or not, to acquire and continue to hold interests in the product.