In a quarter marked by trade wars and political instability, Saxo Bank, the leading Fintech specialist focused on multi-asset trading and investment, has announced technology firms as the most traded among its Middle East based clients in Q2 2018.

NVidia Corp., an American Technology firm, who pioneers a supercharged form of computing and leads in AI computing, is the most popular stock among Saxo Bank’s Middle East clients in the second quarter of 2018.

The second and third most traded stocks across the region via Saxo Bank’s online trading platforms in Q2 2018 are the e-commerce giants Amazon and Alibaba in ranking order.

Commenting on the three most traded stocks in Q2 2018, Peter Garnry, Head of Equity Strategy, Saxo Bank said: “The most traded stocks at Saxo Bank in the Middle East are still technology companies due to their attractive price performance and name recognition. What has changed in recent years is that the top list is dominated by Chinese technology companies as global investors are finally recognizing the growth opportunities.”

The rankings list covers the three most-traded stocks on the basis of net traded volume as well as the three most-shorted stocks (CFDs), based on the number of clients shorting the stock.

Most traded equities across Saxo Bank Middle East users:

NVidia Corp: Chipmaker NVIDIA earns most of its revenue from GPU sales in the gaming market, but its growth opportunities in driverless cars, AI and data centers are fueling both sales and share price gains. The company's share price has surged more than 100% over the past year, and its shares currently trade at about 31 times forward earnings.

Amazon: The juggernaut in e-commerce and cloud infrastructure continues to impress investors and Saxo Bank’s clients have bought into the roaring growth story. Amazon delivers every quarter despite its revenue is expected to move past the USD 200bn mark in Q2.

Alibaba: The fastest growing e-commerce market in the world and the most dominant player in the industry is difficult to resist for investors making Alibaba the second most traded stock. Strong price performance and increased developed markets media focus on Chinese technology companies are likely the biggest drivers of activity in this stock.

Clients across the region share the same positive faith in American firms during Trump’s presidency with two of the three most traded stocks via the SaxoTraderGO-platform being American firm stocks. The three most traded stocks by Saxo Bank clients globally ranked in order are Amazon, Alibaba and Facebook.

Saxo Bank also announced the most shorted equities across its platforms globally.

Commenting on the revealing, Garnry said: “I general, Saxo Bank find clients to hold significant short positions in popular technology stocks in what looks like an aggregate bet against what some investors call “bubble stocks” because they exhibit rather large valuation premiums.”

Most shorted equities across Saxo Bank users globally:

1.       Tesla: The most shorted stock among clients as the company has struggled with delivering against expectations communicated to the market on Model 3 production. Tesla has divided investors and analysts with the upcoming Q2 results being heralded as crucial for Tesla as the market is likely reaching the end of patience with Tesla to deliver on producing Model 3 cars. So far shorts have had a hard time shorting Tesla shares as Elon Musk’s showmanship has continued to gather renewed belief in the company supporting the shares.

2.       Facebook: The second most shorted stock driven by high valuation and the recent Cambridge Analytica data scandal shaking investor confidence and causing US Senate and EU Parliament hearings. Despite the recent scandal Facebook shares have reached new highs making life difficult for short sellers in Facebook. The company continues to have robust growth with monetization of Instagram and Messenger/WhatsApp having just started.

Apple: With rumours about lackluster demand for the new iPhone X the stock price has been more volatile recently and with general saturation of global smartphone market short sellers are betting on Apple to get squeezed on profits. But for now it has been a tough shorting case as Apple continues to increase revenue and operating profits driven increasingly by strong sales of digital content.

 

Source: MCS Action