Comparing Portfolio Performance with other students
|
Week 1 (10-November-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
80.85 |
0.00% |
No news related to the stock |
|
TPG Telecom Ltd |
5.92 |
0.00% |
Building heavily to build business for long-term profit |
|
Air New Zealand |
2.89 |
0.00% |
No news related to the stock |
|
Fletcher Building Limited |
6.32 |
0.00% |
No relevant news provided in the index |
|
Week 2 (17-November-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
80.92 |
0.09% |
Due to market condition |
|
TPG Telecom Ltd |
5.8 |
-2.03% |
Due to market condition |
|
Air New Zealand |
2.84 |
-1.73% |
Due to market condition |
|
Fletcher Building Limited |
6.3 |
-0.32% |
Due to market condition |
|
Week 3 (24-November-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
80.57 |
-0.43% |
Share delcine in broker down grade |
|
TPG Telecom Ltd |
5.74 |
-1.03% |
Decline due to market trend |
|
Air New Zealand |
2.9 |
2.11% |
Air NZ wet-leases to cover 787 maintenances |
|
Fletcher Building Limited |
6.2 |
-1.59% |
Decline due to market trend |
|
Week 4 (1-December-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
79.17 |
-1.74% |
Decline due to fall in banking sector |
|
TPG Telecom Ltd |
5.8 |
1.05% |
Due to market condition |
|
Air New Zealand |
2.88 |
-0.69% |
Influenced by market |
|
Fletcher Building Limited |
6.36 |
2.58% |
Influenced by market |
|
Week 5 (8-December-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
79.62 |
0.57% |
Due to market condition |
|
TPG Telecom Ltd |
6.36 |
9.66% |
Due to market condition |
|
Air New Zealand |
2.95 |
2.43% |
Air NZ to test google translation tech |
|
Fletcher Building Limited |
6.57 |
3.30% |
Due to market condition |
|
Week 6 (15-December-2017) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
79.94 |
0.40% |
Due to market condition |
|
TPG Telecom Ltd |
6.44 |
1.26% |
Due to market condition |
|
Air New Zealand |
3 |
1.69% |
Air NZ to test google translation tech |
|
Fletcher Building Limited |
6.89 |
4.87% |
Due to market condition |
|
Week 7 (5-January-2018) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
81.16 |
1.53% |
Increment due to successful low-cost funding via tier bonds |
|
TPG Telecom Ltd |
6.73 |
4.50% |
Due to market condition |
|
Air New Zealand |
2.88 |
-4.00% |
increment in fuel prices |
|
Fletcher Building Limited |
7.07 |
2.61% |
Due to market condition |
|
Week 8 (12-January-2018) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
80.88 |
-0.34% |
Due to market condition |
|
TPG Telecom Ltd |
6.57 |
-2.38% |
Due to market condition |
|
Air New Zealand |
2.76 |
-4.17% |
increment in fuel prices |
|
Fletcher Building Limited |
6.97 |
-1.41% |
Due to market condition |
|
Week 9 (19-January-2018) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
79.83 |
-1.30% |
Australian banks blocking bitcoin transfers |
|
TPG Telecom Ltd |
6.43 |
-2.13% |
Due to market condition |
|
Air New Zealand |
2.68 |
-2.90% |
Due to market condition |
|
Fletcher Building Limited |
6.89 |
-1.15% |
Due to market condition |
|
Week 10 (26-January-2018) |
|||
|
Name of the company |
Stock price at end of the week |
Percentage change in stock price |
Primary reason |
|
Commonwealth Bank |
78.65 |
-1.48% |
Rate rigging by the bank |
|
TPG Telecom Ltd |
6.28 |
-2.33% |
Due to market condition |
|
Air New Zealand |
2.7 |
0.75% |
Due to market condition |
|
Fletcher Building Limited |
6.85 |
-0.58% |
Due to market condition |
|
Stock |
Purchase price |
Current price |
Return |
|
Commonwealth Bank |
80.92 |
78.65 |
-2.81% |
|
TPG Telecom Ltd |
5.8 |
6.28 |
8.28% |
|
Air New Zealand |
2.84 |
2.7 |
-4.93% |
|
Fletcher Building Limited |
6.3 |
6.85 |
8.73% |
|
Total Returns from the portfolio |
9.27% |
The overall evaluation of above table helps in identifying the portfolio returns that is generated from investment. the return provided from the portfolio is mainly at the levels of 9.27% for the duration of the investment period. However, there are students, whose portfolio provided a return of 20.37%, 171.22% and -8.25%. from the comparison of other student’s portfolio relevant portfolio mainly provided constant returns from investment. The performance of the company is based in markets and other external actors changing the share value of companies listed in the portfolio (Balance 2014).
The share price of Commonwealth bank mainly follows the overall movement of ASX market, which indicates that Australian index drives its share price. The share price pattern of the company reflects the overall trend of ASX index, where decline in index value also declines share price of the company. In addition, any increment in index value also increases the overall value of shares the overall performance of TPG telecom in comparison with ASX market, where the company has provided higher returns in comparison to the market. This directly indicates that the overall performance of the organisation is not driven by the ASX market instead performance of the company changes of the share value.
From the evaluation it could be detected that share price value of Air New Zealand is not driven by the New Zealand index. The overall New Zealand index value mainly increased, while the actual value of Air New Zealand declined over the trading period. This indicates that the New Zealand Index do not drive Air New Zealand share price.
Operating in the New Zealand market, FBU has not performed in accordance with the index, which is directly reducing the returns provided by the company. This directly indicates that the share price movement of FBU is not driven by local market, which depicts the overall reduced return provided by the company (Seetharaman et al. 2017).
From the evaluation both FBU and AIZ share price movement is relevantly correlated, which could be detected from the above figure. In addition, it could be assumed that decline in share price of one company is complemented by the decline in value of other company’s share. Hence, it could be stated that both FBU and AIZ shares are highly correlated (Kevin 2015).
The share rice movement of FBU is relatively complimented by the Australian index, which indicates that changes in price are driven by the market. This indicates the performance of the company is mainly based on market performance, which helps investor in generating higher return from investment.
The share price movement of Air New Zealand is relatively not complemented by the Australian index, which could be detected from the above figure. The increment in Australian index did not increase share value of Air New Zealand, which depicts that the market does not drive price of its shares (Damodaran 2016).
Decline in value of USD can be identified against AUD during the trading period. However, the decline in USD did not compliment the overall share price of CBA, as increment in value of CBA share could be seen during the trading period. This directly indicates that the currency fluctuations do not influence share price of CBA.
The TPG telecom also earns revenue in USD, whereas no impact of the declining USD value against AUD is seen in its share price. During the trading period overall share price of the company mainly increased exponentially, which neglects the chance of any impact from volatile currency market (Jordan 2014).
The overall currency valuation of New Zealand Dollar against AUD is in volatile stage where continuous ups-and-downs could be seen, which is depicted in the above figure. However, the overall value of FBL has also been in volitively stage during the trading period, which indicates share price of the company is influenced by the currency market. This directly indicates that the currency market influences share price valuation of FBL.
The share price valuation of AIZ is also complementing the overall currency market, as declining currency strength of New Zealand Dollar against AUD directly reduces AIZ share prices. This shar price of AIZ has been declining during the trading period and currency market volatility is also high, which indicates the currency market directly influences share price valuation of AIZ (Brooks 2015).
Reference and Bibliography:
Au.finance.yahoo.com. (2018). Major Australia & NZ Indices – Yahoo7 Finance. [online] Available at: https://au.finance.yahoo.com/world-indices [Accessed 28 Jan. 2018].
Balance, P.A., 2014. Investment management. City.
Brooks, R., 2015. Financial management: core concepts. Pearson.
Chandra, P., 2017. Investment analysis and portfolio management. McGraw-Hill Education.
Damodaran, A., 2016. Damodaran on valuation: security analysis for investment and corporate finance (Vol. 324). John Wiley & Sons.
Guerard Jr, J.B., Markowitz, H. and Xu, G., 2015. Earnings forecasting in a global stock selection model and efficient portfolio construction and management. International Journal of Forecasting, 31(2), pp.550-560.
Jordan, B., 2014. Fundamentals of investments. McGraw-Hill Higher Education.
Kevin, S., 2015. Security analysis and portfolio management. PHI Learning Pvt. Ltd..
Oanda.com. (2018). Historical Currency Converter | OANDA. [online] Available at: https://www.oanda.com/fx-for-business/historical-rates [Accessed 28 Jan. 2018].
Render, B., Stair Jr, R.M., Hanna, M.E. and Hale, T.S., 2017. Quantitative analysis for management. Pearson.
Seetharaman, A., Niranjan, I., Patwa, N. and Kejriwal, A., 2017. A Study of the Factors Affecting the Choice of Investment Portfolio by Individual Investors in Singapore. Accounting and Finance Research, 6(3), p.153.
van Duuren, E., Plantinga, A. and Scholtens, B., 2016. ESG integration and the investment management process: Fundamental investing reinvented. Journal of Business Ethics, 138(3), pp.525-533.
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