FINA6000: Financial Performance of ANZ and CSL Stocks During Pandemic

This presentation analyzes the financial performance of ANZ (Australia and New Zealand Banking Group Limited) and CSL Limited stocks during the COVID-19 pandemic. It examines the impact of the pandemic on the global financial market, including the free fall of global equity markets and the negative impact on the global economy, such as the loss of GDP. The analysis includes stock data from Yahoo Finance, geometric mean return, risk assessment (systematic and unsystematic risk), and risk-adjusted return using the Sharpe ratio. The presentation provides a qualitative assessment of each stock, including PE ratios and EPS, and concludes with a discussion of the impact on the selected stocks and recommendations based on the financial data. The author also references several academic papers and financial resources to support the analysis.

FINANCE
Name of the student
Name of the University
Author’s Note

Introduction
 WHO, “World Health Organization” 1st acknowledged COVID 19 is a
pandemic all over the world (Sohrabi et al, 2020). .
 Worldwide Economy could contract by approximately 1% in 2020 due
to COVID-19 Pandemic
 A unpredictable reaction in financial market due to COVID 19
Here, we have studied the current market situation, and to analyze
investment opportunity with the risk and return from both the stocks.
Stocks would be ANZ bank and CSL LIMITED

Impact on global financial market
 Global financial market has been much under pressure due to COVID19
 Global equity markets are free fall
 The threats of coronavirus adding with the oil price war, these combined
effect throw the global stock market into a garbage.

Impact on global economy
 COVID 19- negative impact on the global economy
 Loss of GDP at least 2.4% over 2020
 0.4 percent drop in economic growth which lost the economic output
(Kharas, 2017).

Selected Stock
Australia and New Zealand Banking group Limited
Price= 15.52
Market cap= 46.91B
PE ratio= 8.19
EPS= 2.02
Commonwealth Bank
Price= 325.97
Market cap= 147.948B
PE ratio= 73.80
EPS= 4.42
(finance.yahoo.com, 2020)

Stock Data Analysis
 Data collected from Yahoo finance
 Stock code:
ANZ & CSL
 Period- 30-Nov-2019 to 31-Mar-2020

Geometric Mean return
ANZ- 0.995
CSL- 1.001

Risk
Total risk= Systematic risk + Unsystematic risk
ANZ CSL Rm
Systematic risk (β) 0.584 0.973
Unsystematic risk
(STDV) 0.031 0.034 0.026
Total Risk 0.615 1.007

Systematic risk
Market related risk
This types of risk can not be diversified
This risk only can be hedged by using the asset allocation strategy
 βANZ= 0.584
 βCBA= 0.973
β > 1 Aggressive
β < 1 Defensive
Β = 1 At per

Risk adjusted return
Sharp ratio= (return of stock – risk free rate)/STDV
ANZ CSL
Expected return -0.0042 0.0011
Rf 0.000026
Er-Rf -0.00421 0.00105
STDV 0.031 0.03403
Risk adjusted return -13.61% 3.07%

Recommendation
Qualitative factor
ANZ
PE ratio= 8.19
EPS= 2.02
CSL
PE ratio= 73.80
EPS= 4.42

Impact of the selected stock
Stock price has shown 5% down, ANZ and CSL is suffering a
unpredictable movement due to this financial crisis.
For ANZ, the CEO has adopt four critical parts, focused on protecting,
adapting and engaging and preparing for the future.
CSL Limited (ASX: CSL) stock has shown growth moving upwards,