Aussie investors ride the Santa Rally wave

By Newsdesk

December 18 2023
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Investors taking a punt on the Australian share market have had cause for celebration as of late, with the S&P/ASX 200 index climbing 4.5% in November, spurred on by a standout healthcare sector performance.

Aussie investors ride the Santa Rally wave

Notably, Selfwealth, which touts itself as Australia's premier budget-friendly share trading platform, has been at the heart of this uptick.

With the festive surge, colloquially known as the 'Santa Rally', drawing nearer, market confidence seems to be growing, particularly with the Federal Reserve's navigated 'smooth landing' and the Reserve Bank of Australia potentially halting interest rate hikes amidst easing inflation concerns. "Investors are growing increasingly confident of the Fed Reserve’s smooth landing, and that the RBA could be done hiking rates altogether as inflation retreats," said Robert Marfell, Brand and Content Lead at Selfwealth.

The market optimism is reflected in Selfwealth's report, which details the stocks that have captured investors' interest. Neuren Pharmaceuticals (ASX: NEU) emerged as the darling of the Selfwealth community in terms of collective platform holdings value, justified by a staggering 44.6% leap in shares—making it the second-best performer in the ASX 200 for November.

Commonwealth Bank, BHP (ASX:BHP), CSL (ASX:CSL), and Westpac (ASX:WBC) trailed but remained popular among Selfwealth users. Meanwhile, Qantas (ASX: QAN) reclaimed its top 20 status, surging by nearly 8% as investor confidence revived, catapulting it to the 20th spot. Marfell pointed out the positive sentiment surrounding the airline, remarking, “After considerable challenges affected Qantas’ public image, the airline company saw a resurgence of investor confidence following a trading update at its Annual General Meeting. This renewed trust was evident the total of Selfwealth investors holding QAN increased to 6000 November’s end.”

Pilbara Minerals (ASX: PLS) retained its crown as the most traded stock on Selfwealth’s platform for the fifth consecutive month, demonstrating a strong buy-to-sell ratio. Marfell added, "Pilbara has always been a favourite for our investors, and it’s perched at top of the trade-volume leader-board for an impressive five consecutive months. It’s doing so with a solid buy-to-sell ratio, too. 63.6% of all trades were buys in November — high conviction considering many outside the Selfwealth community are shorting or selling off for fear of battered lithium prices."

In the biotechnology sphere, Imugene (ASX: IMU) experienced heightened trade activity following upbeat reports from its cancer treatment trials, with Marfell noting, "The news was favoured by Selfwealth investors, with 64.7% of November's trades attributed to new holders or top-ups."

Lastly, the Vanguard Australian Shares Index ETF (VAS) maintained pole position as the most traded ETF, with other high-performing funds rounding out the top slots, indicative of a bullish sentiment on US shares for the month.

As festive spirits kindle investment enthusiasm, the Selfwealth report paints a picture of an Aussie market brightly lit by the glow of positive returns and investor confidence.

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