Here's why BHP (ASX:BHP) shares have fallen more than 13% in five days

2 min read | September 03, 2022 09:00 AM AEST | By Ritwika

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Here's why BHP (ASX:BHP) shares have fallen more than 13% in five days — Image source: © Timonschneider | Megapixl.com

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Highlights:

BHP shares closed in the red territory on Friday, 2 September 2022, as the company turned ex-dividend on 1 September.

The ex-dividend date was the last date for investors to buy BHP shares to get BHP's upcoming dividend on 22 September. Investors seem to be on a selling spree post that date.

Sliding iron ore prices might also be responsible for BHP's poor performance on ASX.

Shares of the iron ore producer and supplier BHP Group Limited (ASX:BHP) settled in the red territory by the end of the previous day's trading session on ASX. After Friday's trading session, BHP's share price stood at AU$36.74 apiece after losing 2.052% on ASX.

In the last five days, BHP's share price marked a loss of around 13% on ASX. There could be several factors responsible for this loss.

Factors influencing the share price of BHP on ASX:

The iron ore-producing giant will soon be paying a dividend to its eligible shareholders on 22 September 2022, based on its earnings in FY22. As a result, BHP's ex-dividend date was on 1 September 2022. This could be a factor that has influenced the share price movement on BHP on ASX lately.

The ex-dividend date is the last date for investors to buy a company's share to become an eligible dividend-getter. Usually, stocks are found trading in the red zone on the day after the ex-dividend date. As a result, it justifies the share price performance of BHP on ASX on 2 September 2022.

Another significant factor that often impacts the share price of BHP on ASX is the volatility in the prices of iron ore.

Iron ore is the primary business of BHP. Changes in the price of iron ore directly reflect on the company's earnings and eventually impact the sentiments of investors.

Iron ore futures dropped down by 8% or US$8.37 to US$96.39 per tonne as of Friday, 2 September 2022.

Summary of BHP's share price performance on ASX:

In the span of last 12 months, BHP's share price has declined almost by 13% on ASX. Furthermore, the iron ore producer's YTD-based share price dropped by 13.31% as of 2 September on ASX.

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