Company Interview / The traders' top stocks

Key points:

Marked rotation out of financials and into resources and energy over the past yearBHP (ASX:BHP), CSL (ASX:CSL) and lithium plays like Liontown (ASX:LTR) and Pilbara Minerals (ASX:PLS) attract mixed trading activityProfit taking pronounced in major banks such as NAB (ASX:NAB) and CBA (ASX:CBA)Active but diverse trading continues in Metcash (ASX:MTS), Zipp (ASX:ZIP), and DroneShield (ASX:DRO)

Gemma Dale from nabtrade notes that trading volumes on the ASX have slowed as the holiday season approaches, with many investors remaining heavily cashed up and waiting for compelling opportunities. Dale highlights a significant shift in portfolios over the past year, with investors scaling back exposure to banks and financials and rotating into materials and energy, especially as resource stocks show renewed strength. She draws attention to BHP (ASX:BHP), which recently surged more than 3.5% to a year-high, sparking a marked increase in selling as investors decide to lock in profits.

In the lithium sector, Dale observes the market has lost much of its previous fervour, with only a few names like Liontown Resources (ASX:LTR) and Pilbara Minerals (ASX:PLS) still attracting notable attention. Despite this, there’s no clear direction among holders, with mixed behaviour prevailing. Within financials, National Australia Bank (ASX:NAB) and Commonwealth Bank (ASX:CBA) have seen significant profit-taking, unlike Macquarie Group (ASX:MQG), where movement is driven by larger trade sizes but lacks a consensus view.

Dale points to diverse opinions on CSL (ASX:CSL) following disappointing earnings, highlighting strong buying during downturns and sporadic profit taking as the news flow settles. Metcash (ASX:MTS), Zi (ASX:ZIP), and DroneShield (ASX:DRO) are seeing renewed interest from traders seeking value or recovery potential amid ongoing volatility.