Ahh_gee_Joey commented on a stock · Sep 5, 2022 21:33

Why are BHP shares off and racing on Monday

$BHP Group Ltd (BHP.AU)$
Since the beginning of the year, the BHP share price has struggled to take off amid a challenging economic environment. Its share price is rebounding on Monday.

There are a couple of likely reasons why the BHP share price is heading north during midday trade despite no company announcements.

Firstly, the $SPDR® S&P/ASX 200 Resources ETF (OZR.AU)$ sector is the second-best performing index across the ASX today, with a 2.59% gain at the time of writing.

This also sees shares in BHP’s iron ore rival $Rio Tinto Ltd (RIO.AU)$ lifting 1.75% to $91.77.

Today’s strong turnaround for the benchmark index of Australian resource companies comes after a tumble of 8% since 26 August.

Recently, bearish sentiment impacted global markets following investor concerns about China’s property and COVID-19 crisis.

BHP shares retreated 7.61% last Thursday on the back of going ex-dividend. The share fell again 2.05% the following day, making it five days of consecutive losses.

However, those worries have been alleviated for now as several blue-chip shares trade in bargain territory.