Why is the Fortescue share price getting hammered on Monday?

Why are Fortescue shares getting the cold shoulder today?

| More on:
energy asx share price flat represented by worker in hi vis gear shrugging

Image source: Getty Images

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 S&P/ASX 200 Index (ASX: XJO) is having a rather shaky start to the trading week this Monday. At the time of writing, the ASX 200 has spent time in both positive and negative territory over the first hour or two of trading. The index is currently up, but only just, enjoying a gain of 0.1%, which puts it at just over 7,150 points.

But let's talk about the Fortescue Metals Group Limited (ASX: FMG) share price. Although the ASX 200 is rising today, Fortescue shares are going the opposite way. The mining giant is currently suffering through a 3.4% loss, putting Fortescue down to $19.28 a share.

A 3.4% loss when the ASX 200 is in the green is certainly a move worthy of note. So what's going on with Fortescue shares today?

What's up with the Fortescue share price on Monday?

Well, it's nothing to do with anything out of the company itself, since there is nothing today. In fact, Fortescue's last ASX announcement was released back on 27 October. So this certainly isn't moving the markets today.

But commodity prices certainly are. Prices of raw materials have taken a dive across the board today. As my Fool colleague James discussed this morning, this Monday has seen both lower oil and gold prices. This is weighing heavily on ASX resources shares of all shapes and sizes today.

Take BHP Group Ltd (ASX: BHP) shares. They are presently down by 1.5%. Woodside Energy Group Ltd (ASX: WDS) shares have lost 1.65%, while the Rio Tinto Limited (ASX: RIO) share price has tanked by 2.1%

We don't yet have any firm pricing on iron ore for this week. But it's clear investors aren't too optimistic about this sector today, given that the ASX iron ore miners like Fortescue are some of the worst-performing ASX 200 shares this Monday.

So this is probably why we are seeing such weakness in the Fortescue share price thus far today.

At the current Fortescue share price, this ASX 200 mining giant has a market capitalisation of $59.5 billion, with a trailing dividend yield of 15.37%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »