Australian Stock Market Analysis

This assignment requires an in-depth analysis of the financial performance and stock market trends of four selected Australian companies: Woolworths Limited, Wesfarmers Limited, African Energy Resources Limited, and 8I Holdings Limited. The analysis should utilize financial data from publicly available sources such as Yahoo Finance, the Wall Street Journal, FT, Investmart, SimplyWall, SMH, and company websites. Students need to evaluate key financial indicators and market trends to provide a comprehensive understanding of each company's performance and potential.

Running Head: Finances
1
Project Report: Finances

Finances
2
Que 1a
A) List of stocks:
Australian Based MNC
Name of company
Ticker
Symbol
Amount of
investment
Price per
share (17
Nov 2017)
Wesfarmers Limited WES $ 10,000
$
42.42
Woolworths Limited WOW $ 10,000
$
25.86
Australian Based MNC
Name of company
Ticker
Symbol
Country
where
company is
based
Amount of
investment
Price per
share (17
Nov 2017)
AFRICAN ENERGY RESOURCES
LIMITED AFR
United
Kingdom
$
10,000
$
0.04
8I HOLDINGS LTD 8IH Singapore
$
10,000
$
0.30
B) Week Wise stock performance:
Week 1 (17th Nov 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 42.42
2
Woolworths
Limited 25.86
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04

Finances
3
4
8I HOLDINGS
LTD 0.3
Week 2 (24th Nov 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 43.21 1.86%
1.86% increment has been shown in the
stock price of the company due to new
projects of the company and better
financial position of the company1.
2
Woolworths
Limited 26.31 1.74%
17.4% increment has been analyzed in
the stock price of the company because of
positive changes into the retail industry2.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.03 -25.00%
25% decrement in the stock price of the
company has occurred due to bas
financial position of the company3.
1 Montley fool, Wesfarmers limited, (29th Jan 2018) https://www.fool.com.au/tickers/asx-
wes/
2 FT, Woolworths limited, (29th Jan 2018)
https://markets.ft.com/data/equities/tearsheet/forecasts?s=WOW:ASX
3 FT, African energy resources limited, (29th Jan 2018)
https://markets.ft.com/data/equities/tearsheet/summary?s=AFR:ASX

Finances
4
4
8I HOLDINGS
LTD 0.27 -10.00%
10% decrement in the stock price of the
company has occurred due to no dividend
announcement of the company4.
Week 3 (1st Dec 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 43.89 1.57%
1.57% increment has been analyzed in
the stock price of the company because of
positive changes into the industry5.
2
Woolworths
Limited 26.87 2.13%
It is the continuation effect of retail
industry increment6.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 33.33%
The new projects of the company have
attracted the investors and due to it, the
stock price of the company has been
enhanced.
4
8I HOLDINGS
LTD 0.26 -3.70%
It is the continuation effect of last week
issue7.
5 Montley fool, Wesfarmers limited, (29th Jan 2018) https://www.fool.com.au/tickers/asx-
wes/
4 Fin Data, 8I holdings limited, (29th Jan 2018)
<http://www.findata.co.nz/markets/asx/8ih/news.htm?page=2>
6 Montley fool, Woolworths limited, (29th Jan 2018)
<https://www.fool.com.au/2017/11/17/why-i-think-the-woolworths-limited-share-price-is-a-
sell-today/>

Finances
5
Week 4 (8th Dec 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 43.98 0.21%
Slight changes have occurred into the
stock price of the company.
2
Woolworths
Limited 26.91 0.15%
Slight changes have occurred into the
stock price of the company8.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.29 11.54%
The new financial analyst report has
attracted the traders and investors
towards the stock of the company.
Week 5 (15th Dec 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
7 Fin Data, 8I holdings limited, (29th Jan 2018)
<http://www.findata.co.nz/markets/asx/8ih/news.htm?page=2>
8 Montley fool, Woolworths limited, (29th Jan 2018)
http://fortune.com/change-the-world/woolworths-holdings/

Finances
6
1
Wesfarmers
Limited 44.59 1.39%
Internal changes have affected the stock
price of the company9.
2
Woolworths
Limited 27.07 0.59%
Slight changes have occurred into the
stock price of the company.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.25 -13.79%
The failure in the law suit has decreased
the stock price of the company (The Wall
Street Journal, 2018).
Week 6 (22th Dec 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 44.22 -0.83%
Slight changes have occurred into the
stock price of the company.
2
Woolworths
Limited 27.53 1.70%
Dividend announcement has increased
the stock price of the company10.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
9 the wall street Journal, 8I holdings limited, (29th Jan 2018)
<http://quotes.wsj.com/AU/XASX/8IH>
10 FT, Woolworths limited, (29th Jan 2018)
https://markets.ft.com/data/equities/tearsheet/forecasts?s=WOW:ASX

Finances
7
4
8I HOLDINGS
LTD 0.26 4.00%
The financial analyst report has enhanced
the stock price of the company11.
Week 7 (29th Dec 2017)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 44.42 0.45%
Slight changes have occurred into the
stock price of the company.
2
Woolworths
Limited 27.3 -0.84%
Slight changes have occurred into the
stock price of the company.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.27 3.85%
It is the continuation effect of last week
issue12.
11 Investmart, African energy resources limited, (29th Jan 2018)
https://www.investsmart.com.au/shares/asx-afr/african-energy-resources-limited
12 SimplyWall, Wesfarmers limited, (29th Jan 2018)
https://simplywall.st/stocks/au/consumer-retailing/asx-wes/wesfarmers-shares/news/
wesfarmers-limited-asxwes-time-for-a-financial-health-check/

Finances
8
Week 8 (5th Jan 2018)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 44.56 0.32%
Slight changes have occurred into the
stock price of the company.
2
Woolworths
Limited 27.26 -0.15%
Slight changes have occurred into the
stock price of the company.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.3 11.11%
The current news and the competitive
position of the company has attracted
more investors and thus the stock price of
the company has been enhanced13.
Week 9 (12th Jan 2018)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 43.73 -1.86%
Slight changes have occurred into the
stock price of the company.
13 SMH, Woolworths limited, (29th Jan 2018)
http://www.smh.com.au/business/markets/quotes/news/WOW/woolworths-group-limited

Finances
9
2
Woolworths
Limited 27.25 -0.04%
Slight changes have occurred into the
stock price of the company.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.3 0.00%
No changes have occurred into the stock
price of the company from last week.
Week 10 (19th Jan 2018)
No.
Name of
company
Stock
price at
end of
the
week
% change
in stock
price Primary Reason
1
Wesfarmers
Limited 42.25 -3.38%
The market share of the company has
been grabbed by the competitor.
2
Woolworths
Limited 27.08 -0.62%
Slight changes have occurred into the
stock price of the company.
3
AFRICAN
ENERGY
RESOURCES
LIMITED 0.04 0.00%
No changes have occurred into the stock
price of the company from last week.
4
8I HOLDINGS
LTD 0.28 -6.67%
The internal changes are the main
reason14.
Que 1b
14 the wall street Journal, 8I holdings limited, (29th Jan 2018)
<http://quotes.wsj.com/AU/XASX/8IH>

Finances
10
Que 2
Wesfarmers Vs ASX:
The below figure 1 explains about the stock price of Wesfarmers limited and the stock
price of AXJO. It explains that the stock price of both the stocks is highly correlated.
Changes into the one stock affect the other stock as well. It explains that the stock price of
AXJO is driven by the stock of Wesfarmers.
15
Figure 1: Wesfarmers Vs ASX 200
Woolworth’s petroleum Vs ASX:
The below figure 2 explains about the stock price of Woolworths petroleum limited
and the stock price of AXJO. It explains that the stock price of both the stocks is highly
correlated. Changes into the one stock affect the other stock as well in current scenario.
Earlier there was huge distraction among both the stock. The below graph explains that the
stock price of AXJO is driven by the stock of Woolworths limited.
15 Yahoo Finance, Wesfarmers limited, (29th Jan 2018)
<https://au.finance.yahoo.com/quote/WES.AX/history?
period1=1510857000&period2=1516473000&interval=1d&filter=history&frequency=1d>

Finances
11
16
Figure 2: Woodside Vs ASX
Que 3a
African energy resources limited Vs LSE:
The below figure 3 explains about the stock price of African energy resources limited
and the stock price of LSE. It explains that the stock price of LSE is stable whereas the stock
price of AFR is showing negative trend. Currently there is huge differences among the trend
of both the stock prices. The below graph explains that the stock price of LSE is not driven
by the stock of African energy resources limited.
16 Yahoo Finance, Woolworths limited, (29th Jan 2018)
<https://au.finance.yahoo.com/quote/WOW.AX/history?
period1=1510857000&period2=1516473000&interval=1d&filter=history&frequency=1d>

Finances
12
Figure 2: AFR Vs LSE
8I Holdings Limited Vs STI:
The below figure 4 explains about the stock price of 8I holdings limited and the stock
price of STI. It explains that the stock price of STI is stable whereas the stock price of 8IH is
showing negative trend. Currently there are huge differences among the trend of both the
stock prices. The below graph explains that the stock price of STI is not driven by the stock
of 8I holdings limited
Figure 4: 8IH Vs STI
Que 3b
African energy resources limited Vs 8I Holdings Limited:
The below figure 5 explains about the stock price of African energy resources limited
and the stock price of 8I holdings limited. It explains that the stock price of both the stocks is
highly correlated. Earlier there was moderate distraction among both the stock but currently
both the stock are showing same trend. The below graph explains that the correlation of both
the stock is high.

Finances
13
Figure 5: African energy resources limited Vs 8I Holdings Limited
Que 3c
African energy resources limited Vs ASX:
The below figure 6 explains about the stock price of African energy resources limited
and the stock price of AXJO. It explains that the stock price of both the stocks is not
correlated. The stock price of AXJO expressing that the stock price si same whereas the stock
price of AFR explaining about huge changes. The below graph explains that the stock price
of AXJO is not driven by the stock of AFR.
17 Yahoo finance, African energy resources limited, (29th Jan 2018)
<https://finance.yahoo.com/quote/AFR.AX/history?
period1=1510857000&period2=1517164200&interval=1d&filter=history&frequency=1d>

Finances
14
Figure 6: AFR Vs ASX
8I Holdings Limited Vs ASX:
The below figure 7 explains about the stock price of 8I holdings limited and the stock
price of AXJO. It explains that the stock price of both the stocks is not correlated. The stock
price of AXJO expressing that the stock price is same whereas the stock price of
8IHexplaining about huge changes. The below graph explains that the stock price of AXJO is
not driven by the stock of 8IH.
Figure 7: 8IH Vs ASX

Finances
15
Que 4
a) Wesfarmers Vs Exchange rates:
The below figure 8 explains about the changes in the currency of USD to AUD and
the stock price of Wesfarmers limited. USD currency has been chose because the most of the
business of the company is operating in that currency. Through the evaluation, it has been
found that the movement in the rate and stock price is highly correlated. Changes into the
currency directly affects the stock price.
Figure 8: Wesfarmers Vs Exchange rates
b) Woolworths Vs Exchange rates:
The below figure 9 explains about the changes in the currency of USD to AUD and
the stock price of Woolworths limited. USD currency has been chose because the most of the
business of the company is operating in that currency. Through the evaluation, it has been
found that the movement in the rate and stock price is highly correlated. Changes into the
currency directly affects the stock price

Finances
16
Figure 9: Woodside Petroleum Vs Exchange rates
Que 5
A) African energy resources limited Vs Exchange rates:
The below figure 10 explains about the changes in the currency of UK pound to AUD
and the stock price of African energy resources limited. Basically, this company is based in
United Kingdom and thus UK pound has been opted. Through the evaluation, it has been
found that the movement in the rate and stock price is highly correlated. Changes into the
currency directly affect the stock price.

Finances
17
18
Figure 10: AFR Vs Exchange rates
B) 8I holdings limited Vs Exchange rates:
The below figure 11 explains about the changes in the currency of SGD to AUD and
the stock price of African energy resources limited. Basically, this company is based in
Singapore and thus Singapore dollar has been opted. Through the evaluation, it has been
found that the movement in the rate and stock price is highly correlated. Changes into the
currency directly affect the stock price.
18 Yahoo finance, African energy resources limited, (29th Jan 2018)
<https://finance.yahoo.com/quote/AFR.AX/history?
period1=1510857000&period2=1517164200&interval=1d&filter=history&frequency=1d>

Finances
18
19
Figure 11: 8IH Vs Exchange rates
19 Yahoo finance, 8I holdings limited, (29th Jan 2018)
<https://sg.finance.yahoo.com/quote/8IH.AX/history?
period1=1510857000&period2=1517164200&interval=1d&filter=history&frequency=1d>

Finances
19
References:
Montley fool, Woolworths limited, (29th Jan 2018)
<https://www.fool.com.au/2017/11/17/why-i-think-the-woolworths-limited-share-price-is-a-
sell-today/>
Montley fool, Wesfarmers limited, (29th Jan 2018) https://www.fool.com.au/tickers/asx-wes/
SimplyWall, Wesfarmers limited, (29th Jan 2018) https://simplywall.st/stocks/au/consumer-
retailing/asx-wes/wesfarmers-shares/news/wesfarmers-limited-asxwes-time-for-a-financial-
health-check/
Montley fool, Woolworths limited, (29th Jan 2018)
http://fortune.com/change-the-world/woolworths-holdings/
FT, Woolworths limited, (29th Jan 2018)
https://markets.ft.com/data/equities/tearsheet/forecasts?s=WOW:ASX
SMH, Woolworths limited, (29th Jan 2018)
http://www.smh.com.au/business/markets/quotes/news/WOW/woolworths-group-limited
FT, African energy resources limited, (29th Jan 2018)
https://markets.ft.com/data/equities/tearsheet/summary?s=AFR:ASX
Investmart, African energy resources limited, (29th Jan 2018)
https://www.investsmart.com.au/shares/asx-afr/african-energy-resources-limited
the wall street Journal, 8I holdings limited, (29th Jan 2018)
<http://quotes.wsj.com/AU/XASX/8IH>
Fin Data, 8I holdings limited, (29th Jan 2018)
<http://www.findata.co.nz/markets/asx/8ih/news.htm?page=2>
Yahoo finance, African energy resources limited, (29th Jan 2018)
<https://finance.yahoo.com/quote/AFR.AX/history?
period1=1510857000&period2=1517164200&interval=1d&filter=history&frequency=1d>
Yahoo finance, 8I holdings limited, (29th Jan 2018)
<https://sg.finance.yahoo.com/quote/8IH.AX/history?
period1=1510857000&period2=1517164200&interval=1d&filter=history&frequency=1d>

Finances
20
Yahoo Finance, Wesfarmers limited, (29th Jan 2018)
<https://au.finance.yahoo.com/quote/WES.AX/history?
period1=1510857000&period2=1516473000&interval=1d&filter=history&frequency=1d>
Yahoo Finance, Woolworths limited, (29th Jan 2018)
<https://au.finance.yahoo.com/quote/WOW.AX/history?
period1=1510857000&period2=1516473000&interval=1d&filter=history&frequency=1d>