Comprehensive Analysis: Irish Technology Stock Return Influences

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Added on  2023/02/02

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This report delves into the factors influencing the returns on Irish technology stocks, with a specific focus on Aminex Plc. It begins by acknowledging the difficulty in pinpointing specific market influences but emphasizes the stock market's complex nature. The main body of the report explores several key factors. These include the market-to-book value ratio, earnings announcements, dividend announcements, new product launches, contract acquisitions, mergers, management changes, and accounting errors. The report also examines industry performance, highlighting how companies within the same sector often move in tandem and noting the recent performance of Aminex Plc. Investor sentiment, encompassing bull and bear market dynamics, is discussed, as are economic factors such as interest rates and monetary policy's impact on stock prices. The report concludes by providing a comprehensive analysis of these influences, supported by cited references.
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IRISH TECHNOLOGY
STOCKS
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TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................3
MAIN BODY....................................................................................................................................3
DESCRIBING FACTORS WHICH INFLUENCE THE RETURN ON IRISH TECHNOLOGY
STOCKS............................................................................................................................................3
REFERENCES......................................................................................................................................5
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INTRODUCTION
It is very difficult for any entity to identify the specific factor which influences the
market as a whole (Fornell, Morgeson and Hult, 2016). However, it is been true that stock
market is considered as complex, interrelated system under which large and small investor
participates in order to invest their money with the expectation to earn great return on capital.
Thus, in this report explanation will be provided on factors which likely to influence the
return of Aminex Plc entity which is listed in the stock exchange of Irish where appropriate
model will be selected so that better evaluation of report will get developed.
MAIN BODY
Describing factors which influence the return on Irish technology stocks
One of the most important factors which affect the stock market performance is the
market to book value ratio. However, many other factors are there which affect the price
which may be in terms of rise or fall. Some factors which influence the price of share as
follows:
Any release of news on earnings and profits and regarding future estimates earnings
of listed firms in market.
Announcement of dividend by other entities.
Introducing any new products or services in the market.
Securing any large contract by entity.
Any type of takeover or merger by firms.
Any change of management.
Occurrence of any accounting error or scandals.
Other than this, there are main other factor which mainly affect the return on share of stock
which are as follows-
Industry performance: Often, it is been found that the share prices of entities which engage
in dealing with same line of business will generally move in competition with each other. It is
mainly because the market conditions for such industry affected both in same way. It is also
found that Aminex Plc’s most recent equity get was an unsatisfactory in comparison to its
past performance in past year. It is because of components like financial leverages which
badly affect the mother of all ratios that is return on equity.
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Investor sentiment: It is the another sentiment or confidence because of which market can
grow up or gets down where prices may gets rise or may get fall. However, here basically
two factors are there which affect the value of stock which include bull market and bear
market (Dow, Goldstein and Guembel, 2017). Bull market is considered as situation where
there is a strong stock market for firm. Its stock prices are rising with the confidence of
investor too. Bear market is the situation of weak market where stock prices are generally
falling with the fall of investor confidence too. Recently, there has been decrease in the share
price of Aminex Plc where it is been found that the share price gets down 19% about a month
which is more concerning because company did not have earn the profit in the last 12
months.
Economic Factors-
Interest rates: This is termed as monetary policy where country’s bank can raise or lower
down the interest rate for stabilising the economy of country. But such factors mainly affect
the stock price of entity (Factors that can affect stock prices, 2019). It is because when
company borrows money from bank in order to expand and improve its business, they have to
pay higher interest rates because of which its cost of its debt will get affected.
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REFERENCES
Books and Journals
Dow, J., Goldstein, I. and Guembel, A., 2017. Incentives for information production in
markets where prices affect real investment. Journal of the European Economic
Association. 15(4). pp.877-909.
Fornell, C., Morgeson III, F.V. and Hult, G.T.M., 2016. Stock returns on customer
satisfaction do beat the market: gauging the effect of a marketing intangible. Journal of
Marketing. 80(5). pp.92-107.
Online
Factors that can affect stock prices. 2019. [Online]. Available through
<https://www.getsmarteraboutmoney.ca/invest/investment-products/stocks/factors-that-
can-affect-stock-prices/>
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