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 MARKET REPORTS |
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Stocks
CFDs - top five shorts and top five longs for the week
Anthony Anderson, MF Global, February 23, 2009
We asked MF Global if we could take a peek into their CFD book for CFD traders’ most popular stocks. Prepared by Anthony Anderson, Head of CFDs, below are the top 10 most popular CFD trades for the week based upon stock price gains and losses and the reasons why.
Capital raisings were first and foremost on CFD traders’ minds last week, governing sentiment and the direction of trades. News that a capital raising wasn’t on the cards for ANZ saw traders take out long positions in support of the bank; it was a story similar for Rio Tinto once the capital raising risk was removed. Rio lagged BHP all week. Talk of no capital raising by the CEO of Woodside Petroleum inspired buying.
On the short side, the recent capital raising at $0.15 for PanAust saw shorts established over the stock. A series of broker downgrades has also provoked shorting over Leighton Holdings; Citi downgraded the stock to sell and ABN cut its price target.
MF Global Top five stocks
Prepared by: Anthony Anderson, Head of CFDs
Please note that these are not buy and sell recommendations. They are merely a list of the top trades based upon trader activity, taking into account volume and movement 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 Ltd (BHP) |
Long |
BHP has continued to lag RIO. CFD traders however keen to buy on dips but day trading the stock has been the flavour this week. |
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no.2 |
Australia and NZ Banking Group (ANZ) |
Long |
Market update suggested an imminent capital raising isn’t on the cards and the stock has been solid ever since. |
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no.3 |
RIO Tinto Ltd (RIO) |
Long |
Stock is clearly in play. Capital raising risk removed and has continued to provide great trading opportunities from the long side. |
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no.4 |
National Australia Bank (NAB) |
Long |
Bad debts are on traders minds but local banks look in far better shape than offshore counterparts. |
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no.5 |
Woodside Petroleum Ltd (WPL) |
Long |
$31.50 has continued to hold and this inspired buying. Talk of no capital raising by CEO has certainly helped sentiment. |
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| Ranking |
Stock |
LONG/SHORT |
Reason |
|
no.1 |
BHP Billiton Ltd (BHP) |
Short |
Traders have been shorting BHP and buying RIO now that RIO is on China’s radar. |
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no.2 |
RIO Tinto Ltd (RIO) |
Short |
Some traders clearly don’t like the Chinalco deal and believe that takeover premium has consequently been removed. |
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no.3 |
Newcrest Mining Ltd (NCM) |
Short |
Gold moves ever closer to US$1,000 mark, but certain traders shorting on belief that target might be enough for now. |
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no.4 |
PanAust Ltd (PNA) |
Short |
Seen shorting in this stock post a recent capital raising at $0.15c. |
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no.5 |
Leighton Holdings Ltd (LEI) |
Short |
Series of broker downgrades provoked shorting. Citi downgrade the stock to sell, and ABN cut price target. |
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