Sharesight20 top 20 trades on ASX & NZX - October 2018

Welcome to the October 2018 edition of the Sharesight20 monthly trading snapshot (click here for last month’s Sharesight20), where we look at the top 20 trades on both the ASX and NZX markets among the Sharesight userbase during the current month, and dig a little deeper into the news behind these movements.

Let’s dive into October’s top trades.

Sharesight20ASX October 2018 Snapshot

Afterpay Touch (ASX: APT) put in a strong month yet again to claim the top spot in October, followed by the Vanguard Australian Shares Index ETF (ASX: VAS) (on the back of DRP trades) and Biotron Limited Limited (ASX: BIT). Some of the highlights in the top 20 include:

Afterpay Touch (ASX: APT)

• Afterpay shares plunged on 'buy now, pay later' crackdown fears ahead of Senate inquiry into the sector
• Afterpay says it is “happy to be scrutinised” in Senate inquiry
• Two significant Australian retailers were added to to Afterpay network - Target and EB Games

Biotron Limited (ASX: BIX)

• Announced a successful outcome to its phase 2 trial of HIV-1 drug BIT255 - sending shares up 800% in two weeks
• Biotron directors made a collective $1.1m from exercising options and selling the stock
• The company is now seeking funding for the next stage of clinical trials

Westpac Banking Corp (ASX: WBC)

• Westpac whistleblower reported poor risk culture and 'coverups' to APRA
• ASIC’s “$35 million” court win against the bank looks likely to be thrown out due to sloppy legal work from the regulator
• Not-for-profit group the Australasian Centre for Corporate Responsibility has withdrawn a shareholder resolution calling on the bank to disclose more information about it’s memberships of lobby groups, with the bank agreeing to review its memberships
• Westpac CIO Dave Curran warned of risks as open banking skills shortage looms
• Cheques can now be deposited into Westpac accounts via the bank’s mobile app

Commonwealth Bank (ASX: CBA)

• CBA CEO Matt Comym revealed the bank had sacked 41 employees due to misconduct in 2018
• Comym also revealed he had been interviewed by the CBA board over the Dollarmites ‘account opening scam’ before becoming CEO
• South Australian government has admitted it has no idea how much CBA paid schools in the state to run the Dollarmite program
• The bank is expected to retain its 17.5 million shares in property settlements company PEXA when it floats on the ASX
• Sold its final life insurance business, Indonesian PT Commonwealth Life, in a deal worth $426 million

Telstra Corporation (ASX: TLS)

• Announced Ericson as the chief partner in 5G mobile network roll out, after the Australian Government banned Chinese company Huawei from Australian 5G builds
• Australia’s Telecommunications Ombudsman recorded a 7.7% increase in complaints about Telstra from customers in 2018
• Accepted blame for 1,433 triple-zero emergency calls not being answered due to national outage
• ACCC approved Telstra’s proposed variation to the NBN Migration Plan for Special Services - delaying cut off dates for 170 business days once NBN is available to business customers
• Shareholders voted down Andy Penn’s $4.5 million salary at Telstra’s AGM

Sharesight20NZX October 2018 Snapshot

A high number of dividend reinvestment plan ‘buy’ trades are seen in this month’s numbers for the NZX, particularly at the top of this month’s snapshot. Some of the highlights in the top 20 include:

a2 Milk Company (NZX: A2M)

• Market share of its a2 Platinum infant formula in China increased from 5.1% to 5.6% in the last quarter
• Fears over the entrance of rival Nestlé into the Chinese market appear overblown
• Concern persists over planned Chinese e-commerce law changes due in January
• Nestlé however has launched its own brand of A2-only infant formula in Australia and New Zealand under the NAN brand

Steel and Tube Holdings (NZX: STU)

• BlueScope Steel acquired a 15.8% stake in Steel & Tube, prompting takeover talk
• Fined a record $1.885 million for false claims about its earthquake-grade steel mesh
• Steel and Tube Holdings insisted the company never knowingly broke the law

Auckland International Airport (NZX: AIA)

• Announced a $30 million redevelopment of the Auckland Airport domestic terminal, better integrating with the international terminal
• A false alarm prompted the evacuation of the top floor of the international terminal

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Important Disclaimer. We do not provide tax or investment advice. The buying of shares can be complex and varies by country. You should seek tax and investment advice specific to your situation before acting on any of the information in this article.

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• Blog – How much money can Sharesight save you?
• Blog – 7 reasons why Sharesight is better than a spreadsheet