Why are BHP shares having such a stellar week?

It's been a good week so far for the Big Australian amid optimism surrounding the iron ore price.

| More on:
Female miner standing smiling in a mine.

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

Key points

  • BHP shares have lifted 3% this week
  • They've outperformed the benchmark ASX 200 since market close on Friday
  • The iron ore price has been rising amid hopes of economic stimulus measures in China

The BHP Group Ltd (ASX: BHP) share price has risen against the ASX 200 this week.

BHP shares have gained 3.4% since market close on 9 June from $44.72 to close at $46.25 on Thursday. For perspective, the S&P/ASX 200 (ASX: XJO) has climbed 0.75% in the same time frame.

Let's take a look at what's been going on with the BHP share price.

What's happening?

BHP is not the only ASX 200 iron ore share that has lifted since the start of the week. Rio Tinto Ltd (ASX: RIO) shares have gained 2.8% since market close last Friday, while Fortescue Metals Group Ltd (ASX: FMG) shares have jumped 8.1%.

The iron ore price has increased 5% in a week and is now trading at US$114.50 a tonne, Trading Economics data shows.

This improving iron ore sentiment appears to have given BHP a boost on the market this week.

ANZ economist John Bromhead highlighted base metals lifted amid speculation that Chinese officials could be planning economic stimulus measures. In a research note this morning, he said:

Iron ore futures extended recent gains as investors bet on further stimulus measures boosting demand for iron ore and steel.

Sentiment was supported by data from the China Iron & Steel Association that showed steel output at major Chinese mills jumped 6.5% in early June from late May.

However, the gains were limited amid concerns the government's room to manoeuvre may be limited by already stretched local government balance sheets.

The gains over the past two days come after BHP and other ASX 200 iron ore shares had a shaky start to the week. On Tuesday, BHP shares slid 0.96%.

Meanwhile, analysts at Goldman Sachs have retained a buy rating on BHP shares with a $46.90 price target.

Goldman predicts BHP to pay fully franked dividends of US$1.90 a share in FY 2023 and US$1.50 in FY 2024.

Share price snapshot

The BHP share price has risen nearly 5% in the past 12 months.

Created with Highcharts 11.4.3BHP Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

BHP has a market capitalisation of about $234.29 billion based on the latest share price.

Should you invest $1,000 in Bhp Group right now?

Before you buy Bhp Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bhp Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Monica O'Shea 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 Share Gainers

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Adriatic Metals, Catapult, Seek, and TechnologyOne shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares returned to positive territory this Tuesday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »