Mining stocks were under intense pressure in early trade on the Australian market again today.
In early trade, Rio Tinto dropped 3.8% to $40.76 and BHP 1.4% to $16.80. Both were sold down on the London Stock Exchange overnight.
Later in local trade, BHP recovered to $17.22, up 1%. BHP yesterday lost 5.2% to close at $17.05, a long way from $24.90 four weeks ago. Rio Tinto was down 1% to $41.94.
And the resources pain continues. Big miner Anglo American announced it was shedding staff, stopping dividends and selling assets in what it calls a “radical” restructuring to try to weather the commodity crash.
However, energy stocks were firmer on the Australian market after losing more than 6% in value yesterday. Woodside Petroleum was up 1.49% to $27.29 and Santos 3.78% to $3.43.
On the local market yesterday, billions of dollars were wiped from the mining sector. The materials sector hit its lowest point since May 2005.
BHP, the world’s biggest miner and a favourite of superannuation funds and retail investors because of its steady dividends streams, fell to a 10-year low.