The BHP Group Ltd (ASX: BHP) share price is having a tough finish to the week.
In morning trade, the mining giant's shares are down 2.5% to $43.06.
This means that BHP's shares have now lost 6% of their value this week.
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Why is the BHP share price sinking?
Investors have been hitting the sell button this morning for a couple of reasons.
The first is broad market weakness that has left the ASX boards looking like a sea of red on Friday. This follows a selloff on Wall Street overnight, which saw all major indices fall over 1%.
Also weighing heavily on the BHP share price today has been a pullback in the iron ore price. On Thursday night, the benchmark iron ore price fell 3.6% to US$117.40 a tonne.
Traders appear concerned that higher-than-expected interest rates could stifle global economic growth and demand for the steel-making ingredient.
It isn't just the BHP share price that is falling today. A number of other ASX 200 mining shares are falling with the Big Australian. Here's a quick summary:
- The Champion Iron Ltd (ASX: CIA) share price is down 4%.
- The Fortescue Metals Group Ltd (ASX: FMG) share price is down 2.5%.
- The Mineral Resources Ltd (ASX: MIN) share price is down 1.5%.
- The Rio Tinto Ltd (ASX: RIO) share price is down 2.5%.
Should you buy the dip?
The team at Morgans is likely to see this recent pullback as a buying opportunity. The broker currently has an add rating and a $51 price target on the mining giant's shares.
This implies a potential upside of 18% for investors over the next 12 months.
In addition, Morgans is expecting a $2.66 per share fully franked dividend in FY 2024. This equates to an attractive 6.2% yield.
