The most traded shares in 2019 have all been large cap, growth tech stocks.
Following last year’s market route, there has been a growing narrative that large cap growth stocks, primarily found in the tech sector, have had their day.
Many investors, however, appear to be ignoring that story. According to the trading figures of clients for Saxo Bank, a Danish investment bank, the most traded shares among clients on its trading platform so far in 2019 have all been large cap, growth tech stocks.
The most traded stock, according to Saxo, was Facebook. The social-media company saw 34% more buys compared to the fourth quarter of 2018. Facebook has been attempting to re-jig its strategy and improve its image since its large share price fall in the first half of 2018.
The second most bought was Nvidia. According to Peter Garnry, head of equity strategy at Saxo Bank, behind the popularity of Nvidia is its exposure to graphical processing chips (GPU), among other technologies.
He says: “These GPUs are at the centre of the massive investments in automation, machine learning etc. and thus Nvidia is probably the most pure play on these emergent technologies.”
The company saw 43% more buying compared to the previous quarter. Nvidia, however, is yet to recover from the large fall in price it suffered in 2018.
The third most popular stocks with Tesla. According to Garnry: “Everyone has an opinion about Tesla and investors are as divided about the company’s future as the stock price is volatile. Tesla is biggest pure play investors can do on the transition to electric vehicles and alone for that reason the stock is heavily traded.” However, Saxo Bank’s investors were less keen on the share this quarter compared to the previous, with buys down by 17.5%.
Alibaba, the Chinese tech giant, was the fourth most popular share. Chinese equities had an abysmal 2018, owing to fears of slowdown in the Chinese economy.
Since then, Chinese equities have staged a strong recovery, with fears around China receding. While Alibaba itself is listed on the NYSE, its exposure to the Chinese consumer market means it means it is exposed to such sentiment. It has seen 35.5% more buys in the first three months of 2019 compared to the fourth quarter of 2018.
Finally, Netflix saw a 35.5% surge in trading with the company being the fifth most popular share in 2019. According to Garnry: “With the number of subscribers reaching almost 150 million in the final quarter of 2018 Netflix is becoming a dominant and well-known household name for many consumers when it comes to consuming video entertainment. This obviously drives awareness and trading activity in the stock, but it also helps that Netflix is a compelling long-term growth story.”