3 top volume ASX shares to watch

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

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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.

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