Traders Have Rotated Into Big Multinational Companies On OTC Markets

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

One of the ways we gauge market sentiment is by looking at rotation—which areas of the market, traders and investors are most bullish or bearish on, and watching how those trends change over time. 

We can track this by looking at price (the upward or downward pressure on an asset) as well as by volume (where the most attention is being paid). 

According to volume data from OTC Markets, traders rotated heavily into well-established multi-national companies last month like BNP Paribas BNPQY, Infineon Technologies IFNNY and Heineken HEINY. This flies in direct contrast with August, when traders piled into emerging industries like cannabis and crypto. 

Dollar trading volume in securities from those three firms increased an average of 193% month-over-month from August to September. Shares of Wal-Mart De Mexico S.A.B. de C.V. WMMVY were also heavily traded, with nearly one-fifth of the total dollar volume for 2020 occurring last month. 

On the other hand, several companies that were most actively traded in August—including names like Trulieve Cannabis Corporation TCNNF, Curaleaf Holdings Inc. CURLF, Green Thumb Industries Inc. GTBIF and Planet 13 Holdings Inc. PLNHF—all saw their dollar volume decline month-over-month in September. Even the Grayscale Bitcoin Trust GBTC, which remained the most actively traded security on the OTCQX Market in September, experienced a monthly decline in dollar volume.

Overall, only three of September’s 10 most actively traded securities on the OTCQX Market (GBTC, Trulieve, and the Grayscale Ethereum Trust ETHE) could be classified as “emerging.” In August, five cannabis companies made the list. This rotation could indicate that traders were looking for exposure in more developed industries like energy, consumer staples, and healthcare. 

Venture Companies With The Highest Volume Increases

On the OTCQB Venture Market, Relief Therapeutics Holding RLFTF, Northwest Biotherapeutics, Inc. NWBO, Giga Metals Corp HNCKF, and Basanite Inc. BASA all had dollar volume spikes of over 700% in September compared to August. 

For 2020, CytoDyn Inc. CYDY and Fannie Mae FNMA remain the most actively traded securities on the OTCQB Market, with over $6 billion of annual dollar volume between them. 

Below are the top 10 most actively traded securities on the OTCQX and OTCQB Markets In September.

OTCQX

OTCQB

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.