FINAL SHARE PORTFOLIO REVIEW

Final Share Portfolio Review



Final Share Portfolio Review

Introduction

In this section of the paper we will be analyzing the performance of the HSBC shares to the FTSE 100 index. Then we will provide justification of the decision made to sell or keep the shares. Finally we will discuss the performance of the group portfolios in which HSBC are present.

Discussion and Analysis

I have bought HSBC shares of £ 10,000 on 23rd of October, 2011 at £ 530. I sold these shares at £ 556.10 and gained £488.046. In this section we will be comparing it with the FTSE 100 index and also will provide Justification of your Decision to Sell/Keep the Shares. Following is the graph and table of the shares recorded.

Date

Close

24-Oct-11

530

31-Oct-11

555.53

7-Nov-11

532.13

14-Nov-11

508

21-Nov-11

469

28-Nov-11

488.75

5-Dec-11

518

12-Dec-11

488.75

19-Dec-11

478.25

26-Dec-11

478.25

2-Jan-12

478.25

9-Jan-12

491.4

16-Jan-12

507.7

23-Jan-12

544.9

31-Jan-12

529.7

6-Feb-12

557.5

13-Feb-12

564.4

20-Feb-12

581.7

27-Feb-12

554.88

5-Mar-12

561.17

12-Mar-12

556.1

Analysis of the Performance of HSBC Compared to FTSE 100

The data has been collected from the Thompson Analytic for the HSBC Bank and FTSE 100 all share; it consists of monthly stock price for HSBC and Index points for the FTSE 100 covering October 2011 to March 2012. The graph below shows that the return for HSBC has been continuously fluctuating through the predefined period, it can be seen that the return for HSBC in October 2011 were 0.05 while it decreases to 0.01 in the next month. Since then it is fluctuating dynamically from negative to positive returns, which is not a good sign for HSBC stability. Similarly the graph shows that overall UK market return for the month of December is 0.03 which dramatically decreases to -0.002 in the very next month and continuously fluctuating since then.

The trend shows that fluctuation in the UK market is comparatively less than the HSBC, in the course of the international financial crisis, which had in the autumn of 2011 in the U.K. housing crisis originated; the FTSE 100 began to decline again. In the mid of November 2011, the index is below the limit and in December 2011, it began to increase. The slowdown in the global economy and the worsening debt crisis in the euro area led to a fall in the UK benchmark index. In October 2011, the FTSE 100 ended the day at 2860.86 points (Nigel, 2003: 45).

Descriptive Statistics

N

Range

Minimum

Maximum

Mean

Std. Deviation

Variance

Skewness

Kurtosis

Statistic

Statistic

Statistic

Statistic

Statistic

Std. Error

Statistic

Statistic

Statistic

Std. Error

Statistic

Std. Error

HSBC Return

59

.90201

-.44196

.46005

-.0357693

.01914420

.14704939

.022

.329

.311

2.273

.613

Market Return

59

.23506

-.14412

.09094

-.0014688

.00661913

.05084250

.003

-.537

.311

.216

.613

Valid N (listwis)

59

Descriptive statistics is a big part of the statistic that is dedicated to analyze and represent data. This analysis is very basic. Although there is a tendency to generalize the entire population, the first conclusions reached after a descriptive analysis is a study by calculating a series of measures of central tendency, to see to what extent the data is grouped or scattered around a central value. The table above represents the descriptive statistics for the selected data set, it can be seen lowest value for HSBC return is -0.44196 while its highest return were 0.46005, which clearly indicates huge difference of 0.9020, this shows that the HSBC does not performs better than expected financial performance of the market, the return tends to fall (Luehrman, 2004: ...