Weekly Market Monitor – Week Ending 2 December 2022

  • Top performing ETFs last week heavily featured Chinese tech giants Baidu, Alibaba, Tencent – known as the “BAT” – (IZZ, ASIA, FANG, IBUY, IAA). The BAT have been among the best performing stocks in recent weeks thanks to hopes of China’s reopening—the three are often traded as proxies for China as a whole. Alibaba and Baidu have also entered the semiconductor industry, with government support, driving prices up further. Meanwhile, many traders and analysts have felt that the three had been long oversold since China’s tech crackdown.
  • Inverse funds had pride of place among the bottom performers (SNAS, BBUS, BBOZ) last week, as global markets rallied strongly on a more dovish Fed. Short sellers were broadly burned.
  • There were $324.6 million in reported inflows. Inflow winners featured an array of Australian share market ETFs (IOZ, A200, FAIR). Australia’s stock market has been one of the better performing global equity markets this year, trading flat over the past twelve months, mostly due to the commodities rally.
  • There were $210.2 million in reported outflows, meaning the industry saw yet another net inflow week.
  • The topmost traded ETFs for the week correlated closely with those most traded for the year. Global X Physical Gold (GOLD) and the Global X Ultra Short Nasdaq 100 Hedge Fund (SNAS) featured in the top 10 again. The two have shot up the list of most heavily traded ASX-listed products this year.

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