Insights

Why BHP (ASX:BHP) shares have been getting these investors excited

BHP was one of the most popular stocks among Saxo Capital Markets’ clients last month.
The post Why BHP (ASX:BHP) shares have been getting these investors excited appeared first on The Motley Fool Australia. –

BHP Group Ltd (ASX: BHP) shares were one of the most popular traded stocks amongst Saxo Capital Markets’ Australian clients in August 2021.

Shares in the iron ore major came in at number three, trailing behind Amazon.com, Inc. (NASDAQ: AMZN) and Fortescue Metals Group Limited (ASX: FMG).

What did Saxo say about BHP shares?

August proved to be a challenging month for the BHP share price and broader resources sector.

Besides the company’s FY21 full-year results, BHP made a number of headlines including plans to cease its dual listing on the London Stock Exchange and confirming its merger with Woodside Petroleum Limited (ASX: WPL).

Saxo commented that:

Client attention shifted to BHP Group in mid-August when the global mining giant announced plans to cease its dual listing on the London Stock Exchange and move its entire shares onto the ASX, where 50% of its stock has long been traded.

Looking over at BHP’s FY21 results, Saxo analysts said:

Like FMG, BHP Group posted a 42% rise in profits for the year to the end of June 2021. Much of which was derived by record-breaking profit margins of 64% from its Pilbara-based mines. There was further positivity on the BHP Group share price when it revealed plans to amalgamate its gas and oil assets within Woodside Petroleum, making Woodside one of the ten leading producers of oil and gas in the world. BHP shareholders will also receive shares in the reformed Woodside Petroleum stock.

Popular, but for the wrong reasons

BHP shares tumbled 14.7% in August, largely triggered by a sudden collapse in iron ore prices.

Approximately 196 million BHP shares traded hands in August, with just over a quarter of its monthly volume taking place the days after its FY21 results announcement.

On 18 August, the BHP share price tumbled 7.07% to $47.70 as investors digested its financial performance and outlook for iron ore. The sharp selloff was met with a significant uptick in volume, with ~25.99 million shares trading hands compared to its 20-day moving average volume of just ~6.09 million.

BHP continued to crater the next day, sliding another 6.35% to $44.67. Volume continued to climb with ~26.38 million shares trading hands compared to a 20-day moving average of ~7.17 million.

Foolish Takeaway

BHP’s volume profile is suggestive that investors might have taken reporting season and the recent weakness in iron ore as an opportunity to sell.

August proved to be a very challenging month for BHP shares, as its year-to-date return shrunk from 26.5% at the beginning to a mere 7.5% by the end.

The post Why BHP (ASX:BHP) shares have been getting these investors excited appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Leading broker reveals why these 10 big-name shares have been firing up its clients

The BHP (ASX:BHP) share price is flat in 2021. But how much has the company contributed to the Australian economy?
Materials sector lagged the ASX 200 on Tuesday

Why the Rio Tinto (ASX:RIO) share price is in the red on Tuesday
Why the BHP (ASX:BHP) share price is slumping 1% today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!