BHP Billiton Limited (ASX: BHP) shareholders are biting their nails with shares of the mining heavyweight plumbing new lows today. The stock has been in a downward spiral since August in which time 31% – or nearly $40 billion – has been wiped from the company's market value.
The chart below tracks BHP Billiton's dismal performance against the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the last 12 months.
Source: Google Finance
The shares are now sitting at their lowest level since March 2009 at just $27.37 per unit and there are signs it could get even uglier with iron ore and oil prices also dropping to fresh five-year lows. Overnight, iron ore managed to edge slightly higher to be changing hands for US$69.06 a tonne, while the benchmark Brent oil declined by roughly 1% to just US$61.20 per barrel. Iron ore has nearly halved in value since this time last year while oil has lost more than 40% of its value since June.
Until the high level of volatility shaking the mining sector subsides, BHP Billiton remains a stock to avoid – even despite its compelling dividend yield.
