Updated thoughts on iron Ore Names- RIO,BHP & FMG please

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Question asked 11/03/2023

Updated thoughts on iron Ore Names- RIO,BHP & FMG please

Hi James and Team What a difference a week makes! Can I have an updated view this week on the Iron ore names since China's decision to set a modest 5% economic growth target for 2023. Is it being interpreted as a sign large-scale stimulus is unlikely? Last week M Matters view following Chinas PMI beat was "we like the iron ore names at present believing they are set to make fresh recent highs as China reopens its economy" Has this and the hawkishness of Jerome Powell this week changed your view? All 3 names have now traded Ex-Dividend. Where do you see the sell price of RIO, BHP and FMG is heading? regards

Answer

Hi,

Inline with our rhetoric over recent months we still like iron ore miners into dips, BHP & RIO for example are still trading well above last weeks low even after trading ex-dividend 90c & $3.26 fully franked plus of course the ASX200 had a shocker on Friday but the current market is still rotating in a choppy manner where short-term swings in sentiment shouldn’t influence longer term views.

As you say the economic news flow hasn’t been kind over the last week, but we aren’t hitting the panic buttons yet!

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BHP Group (BHP)

LAST UPDATED 10/03/2023 13:26

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