Stock Portfolio Management

The report titled “Stock Portfolio Management” is prepared to manage the portfolio of the selected stock. Here, the chosen multination company of Australia are Wesfarmers and Woolworths ltd. The both are Australian company and listed in the Australian Security Exchange. The other two companies are selected to complete this report are Air New Zealand Limited and the Airxpanders Inc. The Air New Zealand is the New Zealand based company while the Airxpanders Inc. is an American company but both the companies are listed in the Australian Security Exchange as foreign companies. The report maintain the portfolio for all the four company for the eight week commencing from the 22 nd March 2019 to 3rd May 2019. This report evaluates the performance of the each company at the end of the each week. Further, this paper report the changes in the stock prices price of the every company in the end of the each week along with the reason for this change. This report also compare the performance of the companies with the ASX200 performance. Then, the report analyse the effect of the Australian market in the all four companies as well as the foreign market effect in the selected companies. Lastly, the report analyse the effect of change in the foreign exchange rate in the chosen Australian company along with the effect of change in the Australian exchange rate in the performance of the selected foreign companies.

Running head: STOCK PORTFOLIO MANAGEMENT
STOCK PORTFOLIO MANAGEMENT
Name of the Student:
Name of the University:
Author Note

1STOCK PORTFOLIO MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Evaluation..................................................................................................................................3
1. A Weekly percentage change.................................................................................................3
1. B Portfolio Performance........................................................................................................5
2. Effect of Australian market in Australia based MNCs..........................................................6
3. A Effect of respected foreign market in the foreign stocks...................................................7
3. B Correlation between the foreign stock prices.....................................................................9
3. C Effect of Australian market in the foreign stocks.............................................................10
4. Effect of foreign currency exchange rate in Australian companies.....................................11
A. Woolworths Group Limited................................................................................................11
B. Wesfarmers Limited............................................................................................................11
5. Effect of local currency exchange rate in foreign companies.............................................12
B. Airxpanders Inc...................................................................................................................12
Conclusion................................................................................................................................13
References and Bibliography...................................................................................................14

2STOCK PORTFOLIO MANAGEMENT
Introduction
The report titled “Stock Portfolio Management” is prepared to manage the portfolio
of the selected stock. Here, the chosen multination company of Australia are Wesfarmers and
Woolworths ltd. The both are Australian company and listed in the Australian Security
Exchange. The other two companies are selected to complete this report are Air New Zealand
Limited and the Airxpanders Inc. The Air New Zealand is the New Zealand based company
while the Airxpanders Inc. is an American company but both the companies are listed in the
Australian Security Exchange as foreign companies. The report maintain the portfolio for all
the four company for the eight week commencing from the 22nd March 2019 to 3rd May 2019.
This report evaluates the performance of the each company at the end of the each week.
Further, this paper report the changes in the stock prices price of the every company in the
end of the each week along with the reason for this change. This report also compare the
performance of the companies with the ASX200 performance. Then, the report analyse the
effect of the Australian market in the all four companies as well as the foreign market effect
in the selected companies. Lastly, the report analyse the effect of change in the foreign
exchange rate in the chosen Australian company along with the effect of change in the
Australian exchange rate in the performance of the selected foreign companies.
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

3STOCK PORTFOLIO MANAGEMENT
Foreign stock (ADRs)
Name of company Ticker symbol Amount of
Investment
Price per share at
purchase (22
March 2019)
Air New Zealand
Limited
AIZ A$ 10,000 A$ 2.25
Airxpanders Inc. AXP A$ 10,000 A$ 0.031
Evaluation
1. A 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 sale
2. Wesfarmers
Limited
A$ 34.80 0.7% Recession in
Australian Retail
Market
3. Air New
Zealand
Limited
A$ 2.25 -0.9% Registration mistake
4. Airxpanders
Inc.
A$ 0.031 -13.9% Recession in
Australian market
Portfolio (average) A$ 16.90 -3.3%
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 -0.4% Recession in
Australian Retail
Market
2. Wesfarmers
Limited
A$ 34.65 -0.4% Company bids A$
1.1 Billion for rare
earth miner Lynas
3. Air New
Zealand
Limited
A$ 2.43 8.0% High rate of
dividend
4. Airxpanders
Inc.
A$ 0.035 12.9% Insider increase in
their holdings
Portfolio (average) A$ 16.87 5.0%

4STOCK PORTFOLIO MANAGEMENT
Week 3 ended on 5th April 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 30.40 0.0% - - - - -
2. Wesfarmers
Limited
A$ 34.21 -1.3% Company bids A$
1.1 Billion for rare
earth miner Lynas
3. Air New
Zealand
Limited
A$ 2.57 5.8% Increase in demand
4. Airxpanders
Inc.
A$ 0.035 0.0% - - - - -
Portfolio (average) A$ 16.80 1.1%
Week 4 ended on 12th April 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 31.00 2.0% Growth in
Australian retail
market
2. Wesfarmers
Limited
A$ 34.73 1.5% Growth in
Australian retail
market
3. Air New
Zealand
Limited
A$ 2.60 1.2% Servicing good food
in flights
4. Airxpanders
Inc.
A$ 0.035 0.0% - - - - -
Portfolio (average) A$ 17.09 1.2%
Week 5th ended on 18th April 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 31.22 0.7% Increase in the sales
2. Wesfarmers
Limited
A$ 34.99 0.7% Increase in the sales
3. Air New
Zealand
Limited
A$ 2.59 -0.4% Off season
4. Airxpanders
Inc.
A$ 0.035 0.0% - - - - -

5STOCK PORTFOLIO MANAGEMENT
Portfolio (average) A$ 17.21 0.3%
Week 6 ended on 26th April 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 31.99 2.5% Company reported
the highest sale in
quarter
2. Wesfarmers
Limited
A$ 35.99 2.9% Hike in the
Australian retail
market
3. Air New
Zealand
Limited
A$ 2.60 0.4% Starting of new
season
4. Airxpanders
Inc.
A$ 0.035 0.0% - - - - -
Portfolio (average) A$ 17.65 1.4%
Week 7 ended on 3rd May 2019
Name of Company Stock price at end
of the week
Percentage change
in stock
Primary Reason
1. Woolworths
Group
Limited
A$ 32.84 2.7% Solid sale update
yesterday.
2. Wesfarmers
Limited
A$ 36.37 1.1% Sales increases
3. Air New
Zealand
Limited
A$ 2.65 1.9% High rate of
dividend
4. Airxpanders
Inc.
A$ 0.035 0.0% - - - - -
Portfolio (average) A$ 17.97 1.4%
1. B Portfolio Performance
The performance of the above portfolios for the last seven week shows the growth of
1% in an average. The Woolworths shows the average growth of 1.2% in the last seven week,
which can be consider as good. While, the reason behind this growth is the Australian retail

6STOCK PORTFOLIO MANAGEMENT
marketing trend. The second company named Wesfarmers showed the average growth of
0.7% in the last seven week. The basic reason behind this was the bidding decision made by
the management of the company. The Air New Zealand showed the growth of 2.3% in
average for the last seven week. This is the highest growth reporting company out of the all
four above companies (McLean & Pontiff, 2016). The basic reason behind this was the
performance of the company both in the management decision and the quality of services
provided to their customers. At last, the Aiexpender showed the decreased in the stock price
in the average of 1% in the last seven week. This could not be consider as good. The basic
reason behind this is the Australian market and its competitors.
2. Effect of Australian market in Australia based MNCs
Woolworths Group Limited
In the basis of the above chart, this can be said that the performance of the
Woolworths group ltd. is not inflated by the Australian market. As we can see the Australian
market does not show any major changes in in the graph but the Woolworths shows (Garnaut,
Baxter & Frueger, 2017). The AXJO shows the almost flat movement I the first two month
and little hike in the last month. While, the Woolworths shows the declining trend the first

7STOCK PORTFOLIO MANAGEMENT
month of the three month period and hike the last week of the three month period. Hence, the
Woolworths performance is not driven by the Australian market.
Wesfarmers Limited
In the basis of the above chart, it can be said that the performance of the Wesfarmers
Ltd is affected by the Australian market. As we can see, the company line is just above the
ASX200 line, which states that the performance of the Wesfarmers is depending on the
Australian market. The performance of the company records growth when the Australian
market is trading high and vice versa.
3. A Effect of respected foreign market in the foreign stocks
Here the two chosen foreign stocks are Air New Zealand of New Zealand and
Airxpenders of the USA. Here, the performance of the respective market is taken into
consideration.
Air New Zealand

8STOCK PORTFOLIO MANAGEMENT
In the basis of the above compression chart, this can be observed easily that the
performance of the Air New Zealand is not have any relation with the New Zealand market.
The New Zealand top 50 index show the almost flat trend in the graph having the little
upward trend. While, the graph of the Air New Zealand shows the decreasing trend in the
beginning of the last three months period and then stated showing growth in the last month.
Hence, it can be said that the performance of the Air New Zealand is not effected by the New
Zealand market performance.
Airxpenders Inc.
From the above chart, it is clearly visible that the Airxpenders does not have any
relation with the performance of the American market. The American index reported the flat
trend in the graph in the last three months performance. While, the Airxpanders reported the
high growth in the first of the month of the last three months periods, decrease in the second
moth of the last three period and then it became totally flat. This, graph shows that the
performance of the Airxpanders in not effected by the performance of the American market.

9STOCK PORTFOLIO MANAGEMENT
3. B Correlation between the foreign stock prices
In the basis of the above shown graph, it can be observed that the both foreign stocks
prices are poles apart. There are no arises related to the correlation between the both. The
both are traded in the different direction. In the beginning of the last three months period. The
Airxpanders Inc.(Guerard Jr, Markowitz & Xu, 2015). shows the hike in there stock price
along with the huge ups and downs. While, the Air New Zealand showed the declining trend
in the starting of the period. After that, the Airxpanders shows the declining trend and
become flat in the last month of the stated period. While, the Air New Zealand started
growing in the mid of the stated period and then end up with the increasing trend. Hence, it
can be said that there is no correlation between the stock prices of the two foreign companies.

10STOCK PORTFOLIO MANAGEMENT
3. C Effect of Australian market in the foreign stocks
In the basis of the above chart, there is no relation between the performance of the
Australian market and the select two foreign stocks. As we can see the line of the Australian
market is trending flat while the Airxpanders Inc. (Gitman, Juchau & Flanagan, 2015).
showing the growth in the starting and then become flat and the Air New Zealand shows the
downward trend in the starting and then upward trend. Hence, Australian market performance
does not affect the performance of any foreign company.
4. Effect of foreign currency exchange rate in Australian companies
A. Woolworths Group Limited

11STOCK PORTFOLIO MANAGEMENT
Apart from Australia, the main business operation of the Woolworths is come from
the New Zealand. The company earn maximum New Zealand Dollar as the foreign currency.
The Woolworth is among the top companies of New Zealand in their segment business
(Sharif, Purohit & Pillai, 2015). The change in the exchange rate affect the company. As per
the above graph it can be said that the exchange rate slightly effect the performance of the
company.
B. Wesfarmers Limited
Same like the Woolworths Limited, the main foreign income of the Wesfarmers
Limited is drives from the New Zealand as after Australia, New Zealand is the biggest market
for the company (Chourmouziadis & Chatzoglou, 2016). Hence, the performance of the
company is effected by the currency exchange rate.
5. Effect of local currency exchange rate in foreign companies
Here, the selected foreign companies are Air New Zealand and Airxpanders; one is
from New Zealand and other from America.
A. Air New Zealand Limited

12STOCK PORTFOLIO MANAGEMENT
Air New Zealand Limited operates in many countries, but after Australia, the main
and biggest market for the company is New Zealand as the company is based on the New
Zealand. The Australian Dollar does not affect the performance of the company much as the
above graph of the currency exchange rate reveals.
B. Airxpanders Inc.
The biggest market for the Airxpanders Inc. is America as this company is based on
it. The biggest source of revenue for the company is arriving from the American market.
There is too many ups and downs can be observed in the last three month in the currency
exchange rate (Ferreira, et al., 2017). Although, this cannot affect the performance of the
company as the valuation of the USD is very compared to the AUD.

13STOCK PORTFOLIO MANAGEMENT
Conclusion
From the above portfolio analysis, it can be said that the Air New Zealand Limited
shows the highest growth in the last seven week and expected to be grow more in the near
future. The performance of the company also was not affected by the external factors, which
is a positive sign for the investor. Hence, the investment made in the Air New Zealand is
expected to be higher return in the near future compared to the other four stocks.

14STOCK PORTFOLIO MANAGEMENT
References and Bibliography
About Air New Zealand | Air New Zealand. (2019). Retrieved from
https://www.airnewzealand.co.nz/about-air-new-zealand
About Us - Woolworths Group. (2019). Retrieved from
https://www.woolworthsgroup.com.au/page/about-us/
Chourmouziadis, K., & Chatzoglou, P. D. (2016). An intelligent short term stock trading
fuzzy system for assisting investors in portfolio management. Expert Systems with
Applications, 43, 298-311.
DIY Breast Reconstruction: From Bike Ride to Tissue Expander. (2019). Retrieved from
https://www.airxpanders.com/about_us.php
Ferreira, M. A., Matos, P., Pereira, J. P., & Pires, P. (2017). Do locals know better? A
comparison of the performance of local and foreign institutional investors. Journal of
Banking & Finance, 82, 151-164.
Garnaut, R., Baxter, P., & Frueger, A. O. (2017). Exchange rate and macro-economic policy
in independent Papua New Guinea. Canberra, ACT: Development Studies Centre,
Research School of Pacfic Studies, The Australian National University..
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson
Higher Education AU.
Group, D. (2019). Who we are. Retrieved from https://www.wesfarmers.com.au/who-we-are/who-
we-are
Guerard Jr, J. B., Markowitz, H., & Xu, G. (2015). Earnings forecasting in a global stock
selection model and efficient portfolio construction and management. International
Journal of Forecasting, 31(2), 550-560.

15STOCK PORTFOLIO MANAGEMENT
McLean, R. D., & Pontiff, J. (2016). Does academic research destroy stock return
predictability?. The Journal of Finance, 71(1), 5-32.
Online Trading & FX for Business | OANDA. (2019). Retrieved from
https://www.oanda.com/
Sharif, T., Purohit, H., & Pillai, R. (2015). Analysis of factors affecting share prices: The case
of Bahrain stock exchange. International Journal of Economics and Finance, 7(3),
207-216.
Yahoo is now a part of Oath. (2019). Retrieved from
https://au.finance.yahoo.com/quote/WOW.AX?p=WOW.AX&.tsrc=fin-srch-v1
Yahoo is now a part of Oath. (2019). Retrieved from
https://au.finance.yahoo.com/quote/WES.AX?p=WES.AX&.tsrc=fin-srch-v1
Yahoo is now a part of Oath. (2019). Retrieved from
https://au.finance.yahoo.com/quote/AIZ.AX?p=AIZ.AX&.tsrc=fin-srch-v1
Yahoo is now a part of Oath. (2019). Retrieved from
https://au.finance.yahoo.com/quote/AXP.AX?p=AXP.AX&.tsrc=fin-srch-v1