Company Interview / AUSIEX seeing strong retail shift to resources

Key points:

Strong retail shift to resources: BHP, Fortescue, Pilbara Minerals Profit-taking in banks: Westpac and Commonwealth Bank Appen sees significant trading activity and volatility ETF demand surges, especially for international and fixed income exposure

Retail investors have shown a distinct shift in behaviour over the first half of the year, according to Chris Hill from AUSIEX. Hill states opportunistic purchasing patterns are evident, particularly with a tilt towards the commodities and resources sector. Shares such as BHP (ASX:BHP), Fortescue Metals (ASX:FMG), and Pilbara Minerals (ASX:PLS) have seen robust inflows. At the same time, investors are said to be realising gains and reducing positions in major banks including Westpac (ASX:WBC) and Commonwealth Bank of Australia (ASX:CBA).

Hill notes a trend of heightened activity in technology, with Appen (ASX:APX) standing out as both one of the most bought and most sold stocks, suggesting increased day trading and volatility around the company. Materials and technology sectors are reportedly popular among both retail and advised portfolios, with blue chip stocks such as Woodside (ASX:WDS), CSL (ASX:CSL), and Woolworths (ASX:WOW) also among favoured picks.

Advised investors, according to Hill, are diversifying through ETFs, particularly targeting international and fixed income options. ETF trading volume is up approximately 30% compared to the same period last year, with particular interest in mid-cap and renewable-themed funds, exposing both retail and advised investors to global and emerging sectors for broader portfolio coverage.