Top 10 Traded US Stocks on POEMS in June 2020

July 9, 2020

In this article, we will be looking at June’s top 10 traded US stocks on Phillip’s Online Electronic Mart System (POEMS), based on their gross market value traded. We hope this data will provide some useful insights in terms of liquidity, consumer trend and a quick overall view on the news affecting these popular traded stocks.

We saw the NASDAQ Composite Index break through the 10,000 mark, reaching an all-time high of 10,131 points on 23 June 2020. NASDAQ is the best performing index among the major 3 US indices with returns of around 5.3%. The S&P 500 and Dow Jones Index was fluctuating sideway, slightly off from their all-time high with around 1.3-1.5% return, all in the month of June.


No 1: Boeing Co. (NYSE: BA)

Boeing Co. is the top traded stock on POEMS in June. The world’s largest aerospace company was facing significant headwinds after the grounding of its best-selling 737 Max, due to two crashes which killed 346 people last year.

The COVID-19 pandemic has devastating impact on the plane maker as airlines around the world cancelled their orders for new planes. However, it’s not all doom and gloom for Boeing. The successful conclusion of the first of three testing of the revamped 737 Max on 29 June has sent its share price soaring 14.4% at the close of the trading day.1


No. 2: Tesla Inc. (NASDAQ: TSLA)

The second top traded stock on POEMS for June is Tesla Inc. Following news by CEO Elon Musk on the possibility of breaking even for the second quarter, Tesla’s share price rose 5.2% to close above US$1,000 at market close on 29 June. The electric car maker and clean energy solutions provider has seen its share price, which is notorious for its volatility, surged 141% Year to Date.2

The Democrats have laid out plans to mandate the sales of zero-emission cars by 2035. If the Democrats win control of Congress in November’s election, there may be further sales and growth opportunities for Tesla’s electric vehicles.3


No. 3: United Airlines Holdings Inc. (NYSE: UAL)

Despite the airline industry taking a hit from the COVID-19 pandemic, United Airlines occupies the third spot in the ranking for top traded stocks on POEMS in June. Major airlines stocks around the world are trading at valuations below their long term averages as their earnings are severely affected due to the decline in air travels.

With the easing of travel restrictions, US airlines are gradually resuming their services to other countries. Effective on 8 July, United Airlines will restart its China services with twice-weekly flights.4

With 2 airlines-related counter amongst the top most 3 traded counters, you can read here to learn more on the Aerospace and Defence Industry as well as some related ETFs on this sector.


No. 4: Moderna Inc. (NASDAQ: MRNA)

The biotechnology sector is attracting much public interest as biotech companies are in the race to develop medical solutions for COVID-19. It is of little surprise that Moderna snatched the fourth spot.

The resiliency of the virus has heightened fears of a second wave and demand for biotech products and services far outstrips its supply for the foreseeable future. To increase its capacity, Moderna has announced a manufacturing agreement with drug delivery specialist, Catalent Inc (NYSE: CTLT), to provide supply chain support for the development of its COVID-19 vaccine candidate (mRNA-1273).5


No. 5: Alibaba Group Holdings Limited (NYSE: BABA)

The fifth most traded stock on POEMS in June happens to be the sixth most valuable company listed on US exchanges. The Chinese conglomerate accounts for over 5% of the Chinese economy and is the market leader in China’s cloud computing market – with rivals, Tencent (HKEX: 0700) and Baidu (NASDAQ: BIDU), following behind.6

Alibaba will hire additional 5,000 employees for its cloud computing division in the second half of 2020 to meet the rising demand for cloud computing services during the COVID-19 pandemic. The recent “618” online e-commerce event saw Alibaba and JD.com (NASDAQ: JD) handling a record US$136.51 billion in sales. The record numbers on “618 event” may point to a recovery of the Chinese economy as Alibaba’s ecommerce business benefits from the shift towards online shopping in China.7


No. 6: Facebook Inc. (NASDAQ: FB)

Facebook came in at the 6th spot among the top traded stock on POEMS in June. The stock price of Facebook was relatively flat and moving sideways prior to the boycott that came in at the end of June. This resulted in a surge in trading on Facebook towards the end of June.

The hate speech campaign has a direct impact on Facebook as it generates its revenue from advertisers through their social media platform. Followed by a call from the Stop Hate for Profit campaign, the advertisers were urged to send a message to Facebook to change their practices by pausing all advertising.8 We see some of the big brands exhibit their dissatisfaction towards how Facebook handled the misinformation and hate speech immediately by pausing advertising across all Facebook owned social media platforms.


No. 7: Zoom Video Communications Inc. (NASDAQ: ZM)

Zoom Video Communications has been a popular stock since the global lock down. The stock price has increased by 4 folds since the beginning of the year. In June alone, the stock recorded a 25% return, thus it is not surprising to see this stock on this top traded list.

To counter its much-criticised privacy and security concern, the company has recently onboarded Jason Lee, previously Senior Vice President of Security Operations at Salesforce, as Chief Information Security officer. With Lee joining the team, Zoom is looking to exit its feature freeze period which was implemented on 1 April. The pause of all development was to focus solely on addressing the security and privacy issues.9


No. 8: Nvidia Corporation (NASDAQ: NVDA)

The leading chipmaker in the gaming field, Nvidia was the 8th top traded stock on POEMS in June. The stock gain about 7% in the month of June. Similar to other technology stocks, Nvidia rebounded strongly since the dip in mid-March and hit an all-time high in June at $385.7.

Amid the COVID-19 outbreak, the push toward digital transformation also became a pressing concern of all businesses. Due to a global lockdown, people are switching towards digital lifestyles and technology is becoming a necessity in modern life. On top of that, we also see tremendous growth in the gaming industry, where Nvidia’s popularity in its gaming chips gives them an edge over their rivals.


No. 9: Citigroup Inc. (NYSE: C)

Citigroup, the only bank on the list claimed the 9th spot on the list. The stock is currently still trading way below its pre-pandemic level which was around $80. It experienced a wild ride in the beginning of June where the share price shot up nearly 20% to $61.24 and came down to $48.39.

To fight the economic impact of COVID-19, Federal Reserve cuts interest rate to near 0, resulting in banks suffering in their profit margin. Besides, Citi also increased their credit-loss reserves to safeguard against higher defaults which is likely to happen as a result of a breakdown in economic activities. Businesses are struggling to survive and people are losing their jobs.


No. 10: Advanced Micro Devices Inc. (NASDAQ: AMD)

The last spot goes to Advanced Micro Devices, another chipmaker and a rival of Nvidia Corporation. The performance of Advanced Micro Devices has been lagging behind its peers this month.

AMD takes on Intel in making CPUs and is also rivalling Nvidia on GPUs. With its recent release of latest Ryzen processors, AMD is poised to eat into Intel’s CPUs market.


Conclusion

The names of a few top traded counters may tell a bigger story of the powerful macro-level trends and underlying investments that stand to benefit from the materialisation of those trends. To find out more, do visit this page and learn the 10 major thematic portfolios that we identify.

Reference:

Disclaimer

These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

About the author

Joel Lim (ETF Specialist) and Allen Tan (Senior Dealer)

Joel is the ETF Specialist from the ETF desk in Phillip Securities. He helps to provide sales support and trading ideas to retail investors, remisiers, in-house dealers, and fund managers. Joel also works closely with ETF issuers on new product and business development projects.

Allen joined Phillip Securities in 2016 as an Equity Dealer in the Global Markets Team. He specialises in the US and Canada market and also supports the UK and Europe market.