Saxo Bank, the leading fintech and regtech specialist focused on multi-asset trading and investment, has revealed that UAE investors aided the rebound of American tech firms in Q2, with Microsoft topping its list of most traded stocks in the UAE between April and June, followed by Apple, Tesla, Amazon and Facebook.
Following the deep market correction in March investors were to a large extend buying the rebound trade in Q2, propelling the market back into the pre-COVID-19 territory with the S&P500 sealing its best performing quarter since 1998. This trend is clearly reflected in the top five most traded stocks among Saxo Bank’s clients.
Peter Garnry, Head of Equity Strategy, comments:
“Q2 2020 was surely the “rebirth” of economies on a new platform of state capitalism, funded by very supportive monetary policies melting fiscal and monetary institutions closer to each other in the name of crisis management. All-out stimulus to fight the biggest economic contraction since the 1930s has fostered animal spirits and speculation on a scale we have not seen since 2000, maybe even since the roaring 1920s.”
“Even though we have seen a massive comeback on the stock market, we are not out of the woods yet. As we enter Q3, markets remain fragile. The VIX is indicating a very volatile summer, where Q2 earnings releases will finally reveal the real damage to the corporate sector and potentially give us a rough sketch of what is ahead.”
Outlining the five most traded stocks by Saxo Bank’s UAE clients in Q2, Garnry added:
Microsoft:
Since Satya Nadella took the Microsoft reins back in 2014, he has pushed it towards an online future with a heavy focus on cloud computing. This seems to have been the right choice, as Microsoft’s online solutions especially within digital communications and workplace technology prospered during the COVID-19 lockdowns.
Apple:
COVID-19 left Apple groggy in the beginning of 2020, as most production was tied up in the China lockdown. After the country reopened and the initial scare in March was over, investors started piling into the smartphone giant – catapulting it to reach its all-time high on 23 June.
Tesla:
Tesla stole the headlines once again with an exceptional comeback in Q2 leaving the stock above 1000$/share. Even though Elon Musk called the stock overvalued on Twitter back in May, investors seem to think otherwise. It will be interesting to follow the Q2 earnings, as this will give a more precise indication of how Tesla handled the COVID-19 pandemic.
Amazon:
Q2 was a slow and steady climb towards the sky for Jeff Bezos’ e-commerce mastodon. The business keeps branching further into robotics and streaming, and the company seems prepared for the future. Amazon’s impressive market share could eventually lead to their downfall, as it could lead to further regulation to combat its growing monopoly. But for now, Bezos can celebrate yet another all-time high.
Facebook:
Mark Zuckerberg’s social media platform rose from ashes and outperformed pre-COVID-19 highs with a 44 pct. comeback rally in Q2. However, the Silicon Valley based company has faced a strong headwind lately, as corporate giants such as Coca Cola, Unilever, Adidas and Starbucks have pulled adds from the platform due to lack of moderation against hate speech. Short-term this increases uncertainty which could lead to falling share prices, but it is our view that Facebook’s long-term growth will not be impacted.
Across Saxo Bank’s GCC-wide clients, Microsoft, Apple, Tesla, Boeing and Amazon ranked as the top five most traded stocks in Q2.
© Press Release 2020
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