BHP Shares Slump Amid Broader Market Decline
BHP Group shares (ASX: BHP) took a hit this week, closing down 3.44% at A$61.29 on Friday. The sell-off was part of a broader decline in the Australian market, with the ASX 200 falling 0.8% and the resources sector losing 2.1%. However, the XMJ index is still up 5.6% for August so far.
The recent weakness in copper and iron ore prices could be a concern for BHP's earnings story. Copper futures have retreated around 7% from June highs, while iron ore has pulled back about 12% from recent peaks. Analysts have been warning that softening commodity prices could reduce the company's buffer to absorb project-level disappointments.
Despite today's pullback, BHP's medium-term structure remains intact. The share price continues to trade above its 50-day moving average, which itself sits well above the 200-day average. Analyst consensus currently places a price target of around A$59.98 on BHP shares, modestly below today's closing level.