Something momentous has happened on the ASX boards this Tuesday. Mining stock and ASX veteran BHP Group Ltd (ASX: BHP) has displaced Commonwealth Bank of Australia (ASX: CBA) as the largest stock on the S&P/ASX 200 Index (ASX: XJO), and thus, on the Australian share market.
Unlike in the United States, we don't have a never-ending game of musical chairs when it comes to Australia's largest public company. Banking giant CBA had occupied the top spot on the ASX for more than 18 months, fuelled by a massive share price rally that saw the bank go from under $100 a share in 2023 to last year's record high of $192. Concluding with a lacklustre few years for BHP shares, CBA had been sitting atop the ASX for quite a while. Until today, that is.
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CBA shares out, BHP stock in
This Tuesday has seen BHP shares rally considerably, up more than 3% at present. The miner crossed over $50 a share for the first time in more than a year today, topping out at $50.08 a share. Although CBA stock is also up a healthy 0.7% today (at the time of writing), BHP's move has pushed the miner to a market capitalisation of just over $253.5 billion. As CBA is currently worth about $251.9 billion, BHP is officially the big dog of the ASX once more. The age of the bank is over, the age of the miner is beginning. At least for now.
We've been anticipating this outcome for a while here at the Motley Fool, given how BHP has rallied over a period that has seen CBA fall from that $192 high to the $150 price we are currently seeing.
But of course, it's not the first time that BHP has sat atop the ASX. Prior to 2024, BHP was indeed the largest share on the ASX. Thanks to a 'unification' program that was announced in 2021, BHP ended its dual listing on the London Stock Exchange and made the ASX its primary home. That brought billions of dollars worth of BHP shares to the ASX, allowing the miner to leapfrog CBA as the ASX's largest company.
That lasted a few years until CBA took back its crown in 2024. Now, that crown has been handed back.
What do the Big Australian's gains mean for the ASX 200?
In practice, not a lot. Yes, BHP shares will now draw more dollars from index fund inflows and superannuation funds than CBA. But Australian investors, well, those with exposure to index funds, will still have plenty of exposure to both companies. However, the bragging rights of the largest public company in Australia now belong to BHP. For now, at least.
