Why the BlueScope Steel share price is sinking today

The BlueScope Steel Limited (ASX: BSL) share price has been falling since July 2018.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BlueScope Steel Limited (ASX: BSL) share price is down 5% to $11.56 today despite the US and Australia based steel manufacturer releasing no specific news to the market.

The group is forecasting H1 FY 2019 underlying earnings before interest and tax to come in around 10% higher than the $745 million delivered for the six-month period ending December 31 2018.

As a result of its recent success BlueScope recently announced plans to buy back up to $250 million worth of shares as part of its FY 2019 "capital management program" that includes maintaining $200 million to $400 million of net cash on its balance sheet.

Management estimated it has already returned nearly $850 million to shareholders via dividends and buybacks since the 2017 financial year.

Management has flagged that demand in the US and Australia for its steel and other building products remains robust, with it also having growing building products in China, Vietnam and India. The share price has now lost around one third of its value since August 2018 as investors worry about geopolitical risks, in particular the tariff war between the US and China.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Accent, Cettire, Ioneer, and Pro Medicus shares are dropping today

These shares are ending the week in the red. What's going on?

Read more »

A group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »

Rising share price chart.
Broker Notes

Why this exciting ASX 200 share could rise almost 50%

Bell Potter has good things to say about this biopharmaceutical company.

Read more »

A man holds his head in his hands after seeing bad news on his laptop screen.
Share Market News

Guess which popular ASX stock is crashing 21% today

Its earnings are expected to fall well short of consensus estimates.

Read more »

Buy and sell written on silver cubes on a stock market chart.
Broker Notes

2 buys and 2 sells in the ASX 200 financials sector: analysts

We reveal what the experts think of these ASX 200 financial shares.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Opinions

What are Soul Patts shares worth?

This company has delivered strong gains. But what is its intrinsic value?

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a good session for Aussie investors today.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Broker Notes

These ASX 200 shares could rise 33% to 37%

Analysts at Morgans think these shares could deliver big returns.

Read more »