BHP reaches record highs as copper surge reshapes ASX

The Australian equity market has seen significant shifts driven by the mining and banking sectors. BHP has reached record highs, propelled by soaring copper prices, cementing its position as the ASX’s most valuable company with a market capitalization of $343 billion. BHP now commands nearly 12 per cent of the S&P/ASX 200 index.

This surge in mining stocks has coincided with a sell-off in the banking sector. The Commonwealth Bank of Australia (CBA) has seen its market capitalization fall to $266 billion, driven by concerns regarding slowing credit demand, rising bad debts, and falling property prices. This rebalancing is creating challenges for fund managers who lack significant exposure to the mining giant.

While major miners like BHP, Rio Tinto, and Fortescue have pushed toward record levels, other sectors have shown mixed results. Uranium miners, including Paladin Energy, have seen substantial gains, whereas lithium stocks and certain consumer staples have faced downward pressure. Additionally, Ampol reported a record first-half statutory profit of $1.4 billion, driven by global supply disruptions.