As the ASX closes on one of the busiest weeks of reporting season, investors are digesting company updates and looking for clues as to the outlook for equities in a rising inflation, rising interest rate world.

So far, results have been solid, and few companies have surprised significantly to the upside or the downside. At a global level, investors are still hopeful that the Nasdaq’s new bull market can continue, and that the Federal Reserve will slow its rate of interest rate hikes sufficiently to pull off a rare soft landing.

On nabtrade, many are maintaining a ‘wait and see’ approach. Volumes are well above their June lows but remain soft for earnings season when experienced investors in particular do much of their trading. Perhaps the lack of surprises is limiting opportunities for those who hope for a bargain. As a result, most activity is in the big names which are usually at the top of the most traded list, regardless of whether they have reported or not.

The energy sector has caught some attention this week, with Santos (STO) and Beach Energy (BPT) reporting this week, following Woodside’s update last week. With oil prices surging over the last 12 months (albeit falling back recently), profits were up substantially (Santos’ underlying profit grew by 300%, Beach’s underlying NPAT increased by 39%), but the companies’ share prices failed to rally – in fact, Beach Energy fell nearly 10%. For BPT, this was due to a reported fall in production hidden by high oil prices; nabtrade investors were quick to buy the stock on weakness. Beach Energy is far from its lows – its share price is up more than 55% over 12 months – however, it remains well off its pre-Covid high of $2.70.

Beach Energy (BPT) shares over 12 months

Woodside Energy (WDS) remains a popular buy as investors pocket its healthy dividend. Similarly, BHP (BHP) has continued to find buyers after reporting a bumper profit and increased dividend; those buying over the last few months have been rewarded as the share price has also risen in recent days.

Australia’s third largest listed company, CSL (CSL) reported on Wednesday, and despite reporting its second-largest profit on record, disappointed the market with a lower profit. CSL shares were down as much as 6% on the day, but subsequently rallied and were trading at $299 on Thursday. Nabtraders were enthusiastic sellers at $299.95, just shy of $300. CSL was previously a high conviction stock, held by a small number of investors through its incredible run over the last two decades, but was a strong buy below $250 over the last two years, and now has a much wider holding among nabtrade investors.

Former darling of the funds management sector, Magellan Financial Group (MFG), also presented its results on Wednesday. As they report their funds flow (new investments vs redemptions) monthly, market movements and performance can also be tracked monthly, funds management businesses should deliver relatively predictable results, but Magellan’s fund underperformance, loss of CIO and CEO and redemptions by its largest client have seen it fall dramatically from grace over the last 18 months.

Some investors have been tempted by the falling share price, hoping it would stabilise and then return to favour, so, while MFG is not a top 20 holding, it often appears in the top 20 most traded stocks. Unfortunately, the company’s annual results did nothing to placate the market; some nabtraders were buying.

Magellan Financial Group (MFG) shares over 12 months

The lithium sector also continues to find buyers, with many enjoying the volatility with the speculative end of their portfolios. Lake Resources (LKE) remains popular, as does Core Lithium (CXO) and Pilbara Minerals (PLS). Mineral Resources (MIN) has also been a popular buy following its recent surge.

Mineral Resources (MIN) shares over 12 months

On international markets, Bed Bath and Beyond (BBBY.US) has become the latest meme stock to capture the attention of the Reddit/WallStreetBets crowd. Canadian billionaire Ryan Cohen, who joined the GameStop board in early 2021 at the beginning of the meme stock craze, has taken a 10% stake in the company and recently bought 1.67 million call options with a strike price of $60-80; the BBBY share price is up 440% this month but is still a third of Cohen’s target price, giving the meme crowd plenty to hope for. A small number of nabtraders have chosen to join the ride.

Bed Bath and Beyond (BBBY.US) shares over 12 months