At the end of every quarter, we take a look at the five most traded stocks on BUX Zero. Bought or sold, these are the stocks that have registered the highest number of trades on our platform in the last quarter.
Perhaps a bit counterintuitively, shares in the insolvent German payment company, which earlier this year upset the DAX with one of the most incredible financial scandals in German history, were the most traded in the quarter.
In early July, a second executive at Wirecard was arrested in Munich on suspicion of fraud, while the German parliament started an in-depth investigation into the matter in early September. These events kept investors interested in the stock despite having lost almost 84% of its value in the period.
Wirecard, which owes almost $4 billion to creditors, had filed for insolvency earlier after admitting that 1.9 billion euros booked in its balance sheet probably never existed.
“Never sell Shell”, they say in the Netherlands. Well, investors didn’t really follow that advice in the last quarter, as the Anglo-Dutch oil & gas behemoth lost more than a quarter of its market cap.
Sales were mainly prompted by the company’s second-quarter earnings, which showed that Shell managed to avoid underlying losses only thanks to strong oil trading results.
The oil & gas industry has been one of the most battered by the pandemic. A barrel of Brent crude went from almost $70 at the start of 2020 to under $20 in April. It recently recovered to slightly above $40 as news t broke about the development of two highly effective Covid-19 vaccines.
The third most-traded product on BUX Zero in Q3 2020 was Dutch lender ING. Although the stock closed the quarter pretty much where it started it, it was a crazy ride in between.
ING shares rose in early August despite the company reporting lower quarterly profits than expected, as its CEO, Steven van Rijswijk, stated that loan provisions had likely peaked and customer payment traffic had improved to pre-pandemic levels in July.
However, all gains were wiped out at the end of September when a Polish newspaper alleged that ING’s Polish unit helped launder hundreds of millions of dollars of Russian and Ukrainian money.
Another Dutch bank, ABN Amro closed the third quarter some 11% lighter after reporting a net loss of €5 million for Q2. Aside from its earnings report, the group also announced a cut of its investment bank business by one third, the closure of its corporate finance activities outside of Europe, and its exit from trade and commodity financing.
Tesla was the only US stock in the top 5. In the second half of August, shares in the electric carmaker soared after the announcement of a 5:1 stock split, which took effect on August 28. Enthusiasm faded later on, as the stock was left out of the latest additions to the S&P 500 despite meeting eligibility criteria on profits. The news marked Tesla’s worst day ever on the stock market, spurring a sell-off that cost it 21% of its market cap.
Nevertheless, the company managed to recover by announcing new battery cells that would improve the range of its electric cars. It ended the quarter up by almost 80%.
Last updated on 30.11.2020.
All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.