Oz CFD Traders Play The Banks, BHP and Apple

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By Andrew Nelson

CFD (contracts for difference) trading house CMC Markets has taken a look at trading activity in April, noting Australian traders have shown an increased amount of interest in international CFDs, with Australian markets and the AUS:USD exchange situation remaining subdued.

CMC chief market analyst Ric Spooner also said that traders expended a significant amount of effort adjusting their exposure to Australian banks, although BHP Billiton ((BHP)) and Apple were the most busily traded CFDs in Australia last month.

Spooner notes the interest in Apple over recent months has followed a run in the share price, which has increased about 77% from last November to early April. Net client positions in Apple CFDs have remained consistently long, he points out.

There has also been strong interest in the German 30 Index, which follows the DAX, and is comprised of a mixture of the 30 largest companies in Germany. Spooner reports German 30 Index April turnover was up 30% compared to the average, with turnover increasing since the index peaked in March.

Data from CMC show that exposure in the German 30 flip-flopped between long and short during March and April, ending last month with long and short positions nearly balanced.

Overall, CMC reports that April turnover was up 30% on the year to date average, with Spooner explaining that traders are usually keen to take part in strongly trending markets.

There was a renewed level of focus in USD:GBP activity over March and April. The GBP had been trending higher for most of the year and after a minor correction in early March, the pound was on its way up again, drawing a significant amount of trading interest from late in March though April.

On the local front, CMC notes there was an increased amount of activity in the Australian banking sector post NAB's preliminary numbers and ahead of ANZ and Westpac’s result announcements due in early May.

CMC reports that its net client exposure on National Australia Bank ((NAB)) changed from a small long exposure to a significant short position by the end of April, while there was significant net short exposure to Common wealth Bank ((CBA)). Meanwhile, exposure to both Australia and New Zealand Bank ((ANZ)) and Westpac ((WBC)) was long, although CMC points out these positions declined a little during the last week of April.

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