Wij gebruiken een aantal cookies om u de best mogelijke browser ervaring te bieden. Door deze website te blijven gebruiken, gaat u akkoord met ons gebruik van cookies. U kunt hier meer leren over ons cookie-beleid of door op de link te klikken onderaan iedere pagina van onze website.
BHP is under a huge amount of selling as short positions ramp up; the stock has dropped 3.24% to 31.25. It has now broken through the support level of the last few weeks and it looks like it’s heading back to the year-to-date low of $30.85, as no investor is looking to take the risk.
As more and more news about a slowing China and the winding back of QE hits the news wires - the material plays are going to come under immense pressure. FMG announced the final piece of the King’s development project today, awarding LEI the $1.3 billion final development project. The capex sending means the stock has found itself under $3 for the first time since September last year and is off 33.5% year-to-date.
It is a highly volatile stock but the fact that it is under sustained selling suggests institutional investors are looking at the material space as a whole, and with liquidity running dry globally, these investors are tightening the screws.
The banks are trying desperately to hold the fort however the selling across the board is even drowning out the yield-hunters that have sustained the banks for so many months; with all four in the red.
With the end of financial year approaching, selling for tax purpose will also weigh on the market and the likelihood of another down week is well on the cards.