3 top volume ASX shares to watch

Here are 3 top volume ASX shares to watch this week.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX shares that trade at a high volume are frequently monitored by investors and traders, with some believing that trading volume can influence changes in the share price.

Here are 3 top volume ASX shares to watch this week:

The Fortescue Metals Group Limited (ASX: FMG) share price had a strong start to the year. It has grown by 13.25% from the first trading day of 2019 and is currently trading at $4.74, up 2.38% for the session.

Fortescue is a global leader in the iron ore industry and has consistently produced about 170 million tonnes of iron ore per annum.

In light of the falling demand for low-grade iron ore, the world's fourth-largest iron ore miner responded with a new higher grade 60.1% iron product, West Pilbara Fines.

The new higher grade iron product could attract a premium of $10 a tonne with a negligible effect on costs.

Fortescue is expected to make its first shipment last December 2018.

I think Fortescue management's awareness of the changing market is notable.

Fortescue's share price is currently trading at 10.3x FY19's estimated earnings. For investors with a long-term approach, I think it looks attractive to dip a toe in now.

The Aurizon Holdings Ltd (ASX: AZJ) share price is up 3.04% since the start of 2019 to its current price of $4.41.

Despite the rise in its share price, Australia's largest rail-based transport business is still plagued by some outstanding issues.

The uncertainty over the final outcome for its latest set of operational undertakings (UT5) has clouded Aurizon's FY19 outlook.

Aurizon's management also expects headwinds in FY2019 with additional investment in coal to enhance reliability and cessation of iron ore contracts in bulk.

Aurizon is currently trading at 17.7x FY19's estimated earnings. I believe its share price may continue to be volatile amid the uncertainties. I will avoid Aurizon's shares for now.

The Telstra Corporation Ltd (ASX: TLS) share price is $2.93 at the time of writing, which is up 2.98% from the start of the year.

Despite achieving a strong subscriber growth in fixed and mobile in FY18, Telstra has seen its year-on-year FY18 earnings per share growth slide by around 7.7%.

In the first retail shareholder information meeting on September 2018, Telstra's management has provided weaker FY19 guidance.

With the half-year results announcement around the corner, I will approach Telstra shares with a wait and see attitude. The Telstra share price is currently trading at 14.23x FY 19's estimated earnings.

Motley Fool contributor Ivan Loh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave the thumbs up to these ASX shares last week. Why are they bullish?

Read more »

Jessica Amir
Investing Strategies

6 ASX shares to buy and hold until the next leap year

These are the stocks to store in the portfolio until the next February 29 rolls around in 2028, according to…

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Share Market News

If I invest $10,000 in Qantas shares, how much passive income will I receive in 2024?

Here's what analysts are predicting from the airline operator.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Value Investing

Looking for ASX value shares? Here's 1 I'd buy and 1 I'd avoid!

It's not an easy exercise to identify which stocks are undervalued and which ones are simply terrible. Here's an example…

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.

Will I be buying Zip shares now the company has turned a profit?

Is now the right time to buy this BNPL stock -- or not?

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape

1 ASX dividend stock down 55% to buy right now

Here's why I think this beaten-up stock could be an opportunity.

Read more »

Three analysts look at tech options on a wall screen
Share Market News

Here's how the ASX 200 market sectors stacked up this week

ASX tech shares are on fire, leading the 11 market sectors for a third consecutive week.

Read more »