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Top Ten CFD stocks for the week
Anthony Anderson, MF Global, May 16, 2008

We asked MF Global if we could take a peek into their CFD book for CFD traders’ most popular stocks. Prepared by Anthony Anderson, Senior CFD Broker, below are the top 10 most popular CFD trades for the week based on percentage gains and losses and the reasons why.

The big news this week was a proposed merger between Westpac and St George as Westpac’s new CEO Gail Kelly – recently departed from St George Bank – strikes while the iron is hot. CFD traders went short Westpac; as CompareShares readers will know from our educational pieces on the merger process it’s often the bidder that suffers a pullback in price during such negotiations.

Suncorp Metway also entered the top 10 this week as CFD traders question whether the regional bank could also be on the hit list of a big four bank.

National Australia Bank was also favoured as the closing of a A$1.6b bond raising adds confidence to credit markets and the banking sector generally.

Rumours abound in today’s market, and CFD traders with a view to profit swoop on any new information swiftly. Rumours circulate that a Chinese company is looking to grab a stake in BHP Billiton. Similarly, traders liked the sound of rumours out of London that BHP is considering raising its bid to 3.8 BHP shares for each Rio share. Both stocks attracted solid buying interest this week.

The tide is turning in favour of Telstra, which has attracted strong buying interest all week, according to MF Global. Telstra reaffirmed its 08 profit forecasts.

MF GLOBAL TOP TEN STOCKS
Prepared by: Anthony Anderson, Senior CFD broker

Please note that these are not buy or sell recommendations; they are merely a list of the top trades based on volume for the previous week. This information does not constitute advice, and is intended as a reference only.

Ranking	Stock	LONG/SHORT	Reason
no.1	BHP BILLITON LIMITED (BHP)	LONG	Spurred along by firm oil and metals early in week then later in the week by rumours that a Chinese company was looking to take a large stake in the company.
no.2	RIO TINTO (RIO)	LONG	Rumours persist out of London that BHP is considering raising its bid to 3.8 BHP shares for each RIO share.
no.3	NATIONAL AUSTRALIA BANK LIMITED (NAB)	LONG	NAB’s closing of A$1.6B bond raising adds confidence to credit markets and banking sector.
no.4	WESTPAC BANKING CORPORATION (WBC)	SHORT	Good protective shorting interest as WBC launches merger with St George bank.
no.5	TELSTRA CORPORATION LIMITED (TLS)	LONG	Strong buying all week as company reaffirms full year 08 profit forecast.
no.6	WOODSIDE PETROLIUM LIMITED (WPL)	SHORT	Traders continue to short as both oil and stock hit new highs. Removal of tax exemptions in budget also cloud outlook.
no.7	NEWS CORPORATION (NWS)	LONG	Had good 3rd quarter earnings rise and CFD traders hoping company finally turning around. Weaker Aussie dollar helping as well.
no.8	SUNCORP-METWAY LIMITED (SUN)	LONG	CFD traders keen on this bank as another possible target after raid on St George focuses attention on regional banks.
no.9	HARVEY NORMAN HOLDINGS LIMITED (HVN)	LONG	Broker upgrades after 3Q sales have spurred interest in this under performing stock.
no.10	PALADIN ENERGY LTD (PDN)	LONG	Uranium returns to spotlight after leading broker initiates coverage with a BUY. PDN traders favourite Uranium play.