Aussie share vs. UK/US version: No correlation

[tronic72]

Hi,

Can someone explain why a company such as BHP goes up nearly 3 percent in the US or UK markets, then only 2 in the AU? This wasn't isolated either. This week I watched the UK and US price of BHP consistently overperform the same stock in AU.

A quick look at BHP. On friday closed .44 up in the US. Same stock in AU, .6 down.

Tuesday in the US, BHP was up 2.57%. In AU, just over 1.6%. Throughout the week the UK and US "versions" of BHP outperformed the AU share.

Can someone explain why their markets continue to outperform ours? I'd like to think that I'm comparing apples to apples. Am I missing somthing?

T

 

[tronic72]

addEDIT: Just to add to the post. BHP (UK), is up 5.7% for the year while the AU "version" is up about .2%. In January, the UK version was up 12.5% while the AU was up only 7.45%.

I initially I thought this was just an off occurrence but it doesn't seem to be the case.

 

[skyQuake]

Hi,

Can someone explain why a company such as BHP goes up nearly 3 percent in the US or UK markets, then only 2 in the AU? This wasn't isolated either. This week I watched the UK and US price of BHP consistently overperform the same stock in AU.

A quick look at BHP. On friday closed .44 up in the US. Same stock in AU, .6 down.

Tuesday in the US, BHP was up 2.57%. In AU, just over 1.6%. Throughout the week the UK and US "versions" of BHP outperformed the AU share.

Can someone explain why their markets continue to outperform ours? I'd like to think that I'm comparing apples to apples. Am I missing somthing?

T

1. FX difference
2. Aus is 1 day ahead. So BHP AU -0.6% due to aussie factors. UK opens, BLT LN rallies a bit. BHP US Opens and digests UK's gains. In the end BHP US +0.33%, which is 0.8% above AU. Given S&P's rally and SPI +0.6% is quite normal.

 

[Starcraftmazter]

You need to price both in a common currency before you can begin to make such comparisons.

http://www.macrobusiness.com.au/2012/03/sp500-and-asx200-are-the-same-market/

Also, there is nothing whatsoever stopping you from buying BHP on the UK or US exchanges.