Recent data shows bank stocks were heavily sold during January and February.
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Bank shares have fallen in popularity with investors to start the year, according to data from AUSIEX.
No bank shares were among the top five most bought listed investments for advised clients, non-advised investors, and SMSF clients in February.
Furthermore, Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) were among the most sold shares by advised investors in February.
National Australia Bank Ltd (ASX: NAB), Commonwealth Bank, and Westpac were amongst the top five most sold by SMSF trustees in January.
Profit taking on bank shares
In 2024, the big four banks enjoyed strong gains across the board.
Commonwealth Bank rose 37.1%, NAB lifted 20.8%, and Westpac gained 41.1%.
This could be one factor influencing the sell-off amongst investors in 2025.
A down start to 2025
As The Motley Fool’s Bernd Struben reported last week, the big four bank shares all fell during the month of February.
- CBA shares declined 2.4%
- ANZ Group Holdings Ltd (ASX: ANZ) shares fell 2.7%
- NAB shares plummeted 12.1%
- Westpac shares dropped 5.7%
Despite consistent reports of CBA stock being overvalued, its share price was the most resilient of the big four during February.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 4.2% in February.
Meanwhile, Westpac and NAB shares likely fell on the back of reporting season news.
Investors looking elsewhere
Based on the data from AUSIEX, investors see opportunities in Telstra Group Ltd (ASX: TLS), BHP Group Ltd (ASX: BHP), and Woodside Energy Group Ltd (ASX: WDS).
Investors may be seeing opportunities in Telstra thanks to its efforts to grow revenue and reduce costs over the past few years.
Goldman Sachs agrees, currently placing a buy rating and a $4.50 price target on Telstra shares.
Meanwhile, BHP could be considered somewhat of a sleeping giant. The blue-chip company’s share price has spluttered over the last two years.
However, the ASX 200 mining stock has been resilient to challenging conditions in recent times.
Reports indicate the company may be in line for a bounce back. This is thanks to its position to weather any storms of falling iron ore prices.
Motley Fool contributor Aaron Bell has positions in BHP Group and National Australia Bank. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.