Interesting to see the opinions of some that BHP's move isn't relevant to FMG, it very well could be. BHP's move was not related to it's earnings or the WPL transaction but rather the winding up of its UK listing and the discount that this listing traded at. The effect of this is where BHP may have traded at 12x forward earnings yesterday, it may trade at 11x forward earnings today. If that new valuation multiple is reflected across the sector, as it should be considering BHP's size, that impacts FMG's price considerably - probably to the order of around 10%. If investors want exposure to Iron Ore, BHP is now comparably cheaper than the status quo and more attractive.
Iron Ore Prices
Some significant losses since we last traded:
- a 1% decline after ASX trade yesterday; and
- a further 1.5% decline overnight depending on where you look along the curve.
Iron Ore Stocks
- BHP should open a devastating -6.2% lower.
- RIO actually looks fairly flat, approximately all things considered.
Iron ore price, page-35458
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Last
$19.96 |
Change
-0.720(3.48%) |
Mkt cap ! $61.45B | |||
| Open | High | Low | Value | Volume |
| $20.18 | $20.38 | $19.96 | $247.8M | 12.31M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 66287 | $19.96 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $20.00 | 10809 | 2 |
View Market Depth
| Last trade - 16.10pm 01/10/2024 (20 minute delay) ? |
| FMG (ASX) Chart |