Share Market Movements

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A summary of events affecting the share price of selected companies that we follow in the Australian Share Market.

BHP Group Limited Share Sell-Off

BHP is ending it’s dual listing between the LSE and the ASX. The UK Court sanctioned a scheme of arrangement last Friday unifying the two entities BHP Plc and BHP Group Ltd. After unification BHP Group Limited will be the sole parent company. The unification will happen through a one-for-one exchange between each entities shares [1].

As one would expect, this unification has caused some wealth managers to rebalance their portfolios. BHP Group Ltd’s listing on the ASX saw some changes to their significant shareholders last week. JPMorgan Chase & Co. and Citigroup bought more than seventy-two million shares between them. These purchases saw BHP shares gain $1.25 last Friday, and to lose $1.99 yesterday and today, closing at $44.93.

Brambles Limited Share Price Downgraded

Brambles closed last financial year (30 June) at $11.44 and steadily rose to $12.49 in September. Since then they have been on a slow decline to today’s close at $9.43. Although I haven’t seen it myself, Morgan Stanley issued a broker’s note today targeting a price of $9.30. They issued the note on concerns with Bramble’s current supply chain [2].

At $9.30, this will provide a dividend yield of about 2.5%. Of course we assume they can maintain their ten-year average dividend of $0.23 per share. That will bring their yield much closer to their peers in the S&P/ASX 20. At that price, Brambles may be a better buy now than it was six months ago.

Rio Tinto Limited – Everyday Respect Report

Rio Tinto today released its ‘Everyday Respect Report’, an external review into its company culture. The report revealed more than one-quarter of female employees have experienced sexual harassment while at work. Alarmingly, twenty-one women reported an actual or an attempted rape in the workplace.

Rio’s CEO, Jakob Stausholm has expressed his regret and is determined to implement corrective actions. The report’s author, Elizabeth Broderick, the former Australian Sex Discrimination Commissioner, says that Rio is committed to increased transparency, accountability, and action. She added that this report should not reduce confidence in Rio Tinto Ltd [3].

Rio finished today down nearly 2.4% to close at $108.90. That’s still up from the end of financial year’s (31 December) close of $107.12.

Fortescue Metals Group Limited Share Price Falls

Fortescue moved significantly over the last week when wealth managers The Capital Group Companies, Inc sold more the 4,360,000 shares. The sell-off took place between the 19th and 28th of January, seeing FMG fall from $20.44 to $19.45.

That’s quite a fall from its end of financial year (30 June) close of $23.44. If Fortescue can still maintain its ten-year average dividend of $0.42 per share then they will yield 5%.


[1] https://www.bhp.com/news/media-centre/releases/2022/01/court-sanction-of-bhps-unification-scheme-of-arrangement

[2] https://www.fool.com.au/2022/02/01/why-aussie-broadband-bhp-brambles-and-champion-iron-shares-are-dropping/

[3] https://www.riotinto.com/news/releases/2022/Rio-Tinto-releases-external-review-of-workplace-culture

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