Why is Fortescue (ASX:FMG) share price on investors’ radar?

3 min read | May 05, 2022 05:35 PM AEST | By Sukriti Nair

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Why is Fortescue (ASX:FMG) share price on investors’ radar? — Image source: © 2022 Kalkine Media ®

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Highlights

ASX200 closed 0.82% higher with most sectors in green, led by IT, Energy and Utilities.

ASX200 Materials Index (XMJ) also closed 1.449% higher today (5 May 2022).

Fortescue Metals Group share price aligned to the broader market dynamics.

ASX200 index closed about 0.8% higher today (5 May 2022), powered by the tech sector, energy shares, utilities and material stocks. While All 11 sectors ended the day higher, The ASX200 Materials sector index (XMJ) closed around 1.449% above its previous day's level. The energy and materials diversified company Fortescue Metals Group Limited (ASX:FMG) also followed suit.

FMG shares last exchanged hands on the ASX today at AU$20.830 a share, about 3.528% higher than its previous close. While there were no new announcements by FMG on the exchange, its share price still edged higher today.

How did Fortescue share price move on the ASX today?

Shares of Fortescue Metals Group moved northwards today, closing trade higher by over 3.5%. The movement in share price seems to be an impact of the broader market pull-up and lingering positives on the materials and energy sector companies.

While the Energy sector closed the day's trade by about 1.86% and the Materials sector was also 1.36% higher, FMG's share price has aligned itself.

Furthermore, FMG's major business chunk deals with iron ore shipments. While iron ore price (Tianjin) was slightly down today, since January 2022, its price has increased. In the last six months, FMG share price has appreciated by 45.36%. For a large-cap company like FMG, such appreciation in share price is worth noticing.

FMG’s share price performance

On the ASX, as of date, shares of Fortescue Metals Group Limited trade at a market capitalisation of AU$61.94 billion.
FMG share price trades in the 52-week range of AU$13.900 to AU$26.580 a share, with an average trade volume of over 9.5 million shares.
In the last five days of trade on the ASX, FMG shares have lost over 4.58% of their pricing while being 3.83% down for a month.
In terms of distributions, as of date, FMG's annual dividend yield stands at 14.76%. Its last dividend payment of AU$0.860 a share was made on 30 March 2022. The dividend was fully franked, and shares are trading ex-dividend as of date.
FMG shares trade at a PE ratio of 4.98 on the ASX as of Thursday.

Bottom line

While FMG remained void of any new price-sensitive announcements on the ASX today, its share price showed a movement of more than 3% on the ASX. The major reason appears to be a broader market upside which is also got reflected in the entire materials and energy sector.

Since the Russian invasion of Ukraine began, materials and energy sectors have been grabbing investors' attention. Thursday seems to be yet another day of happiness for those invested in these sectors, especially those who have stakes in Fortescue shares. The reason is the reversal of the last five day's losses by FMG shares today.

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