Stock Analysis of Australian Based MNC

Running head: STOCK ANALYSIS OF AUSTRALIAN BASED MNC
STOCK ANALYSIS OF AUSTRALIAN BASED MNC
Name of the Student:
Name of the University:
Author Note

STOCK ANALYSIS OF AUSTRALIAN BASED MNC1
Table of Contents
Introduction................................................................................................................................2
Evaluation..................................................................................................................................3
1. A Weekly percentage change.................................................................................................3
Portfolio Performance................................................................................................................6
Effect of Australian market in Australia based MNCs..............................................................6
Effect of respected foreign market in the foreign stocks...........................................................7
Correlation between the foreign stock prices.............................................................................8
Effect of Australian market in the foreign stocks......................................................................9
Effect of foreign currency exchange rate in Australian companies...........................................9
Effect of local currency exchange rate in foreign companies..................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

STOCK ANALYSIS OF AUSTRALIAN BASED MNC2
Introduction
The report is prepared to analyse the performance of the four multinational
company, which are listed in the Australian Security Exchange. The two out of four
companies are the Woolworths Group and the Wesfarmers Ltd; both are Australian based
multinational companies. The third company is Credible labs Inc., that is an United States of
America based company. The last one is from the New Zealand named Tower Limited. The
both foreign companies are listed in the Australian Security Exchange. The report prepared
the portfolio of all the four companies for eight weeks from 22nd of March up to 3rd of May.
This paper analysis the performance of all selected companies and report the changes in the
share price in the end of the each week. This also compare the performance of all the four
chosen companies to the performance of ASX200 (Grinold 2018). Lastly, this tries to find out
the reason behind the change in the stock price of all companies and evaluate the foreign
exchange rate’s effect in their performance.
Australian Based MNC
Name of company Ticker symbol Amount of
Investment
Price per share at
purchase (22
March 2019)
Woolworths Group
Limited
WOW A$ 10,000 A$ 30.51
Wesfarmers Limited WES A$ 10,000 A$ 34.80
Foreign stock (ADRs)
Name of company Ticker symbol Amount of
Investment
Price per share at
purchase (22
March 2019)
Tower Limited TWR A$ 10,000 A$ 0.69
Credible Lab Inc. CRD A$ 10,000 A$ 1.045

STOCK ANALYSIS OF AUSTRALIAN BASED MNC3
Evaluation
Weekly percentage change
Week 1 ended on 22nd March 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 30.51 0.9% Increase in
profitability
2. Wesfarmers
Limited
A$ 34.80 0.7% Increase in
profitability
3. Tower
Limited
A$ 0.69 4.55% Starting new project
4. Credible Lab
Inc.
A$ 1.045 -6.70% Financial crises
Portfolio (average) A$ 16.76 -0.54%
Week 2 ended on 29th March 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 30.40 -0.36% Recession in
respective Market
2. Wesfarmers
Limited
A$ 34.65 -0.43% bids A$ 1.1 Billion
for rare earth miner
Lynas
3. Tower
Limited
A$ 0.665 -3.62% Recession in
respective Market
4. Credible Lab
Inc.
A$ 1.10 5.26% Insider increase in
their holdings
Portfolio (average) A$ 16.70 O.21%