1.0 Introduction
This interim report provides the performance of the portfolio which has been chosen. The content of the report include the analysis about the performance of every single shares and the portfolio, and the amendments to our investment strategy and the portfolio.
2.0 The performance of the initial portfolio
The initial portfolio includes the shares: 1300 shares of BP Plc; 3000 shares Barclays Plc; 2100 shares of Park Plaza Hotels Limited; 200 shares of Autonomy Corporation Plc.
Table 1: The share prices of the individual shares
(p) Oct 7 Oct 14 Oct 21 Oct 28 Nov 4 Nov 11 Nov18 Nov 25 Dec 2
BP 393.6 416.4 429 467.2 452.55 458.3 449.95 425.4 464.8
Barclays 164,7 176.05 180,8 215.00 188.32 178,90 166.40 155.65 190.65
PPH.L 222.5 222.5 227.5 227.5 227.5 242.5 245 245 245
AC 2549 2550 2551 2548 2548 2550 n/a n/a n/a
Data from London Stock Exchange
Table 2: The value of the shares and the total value of the portfolio
£ Oct 7 Oct 14 Oct 21 Oct 28 Nov 4 Nov 11 Nov18 Nov 25 Dec 2
BP 5,116.8 5,413.2 5,577 6,037.6 5,883.15 5,957.9 5,849.35 5,467.15 6,042.4
Barclays 4,941 5,281.5 5,424 6,450 5,649.6 5,367 4,992 4,669.5 5,719.5
PPH.L 4,672.5 4672.5 4,777.5 4777.5 4777.5 5,092.5 5,145 5,145 5,145
AC 5,098 5,100 5,102 5,096 5,096 5,100 5,100 5,100 5,100
Total 19,828.3 20,467.2 20,880.5 22,361.1 21,406.25 21,517.4 21,086.35 20,381.65 22,006.9
3.0 The analysis of the performance
This part gives the analysis of the individual shares and the portfolio as a whole.
3.1 The performance of BP Plc
From information of the chart 1 above, it indicate the BP is performing better than the FTSE 100 index during the period from 7 October 2011 to 2 December 2011. However, BP plays a very important role in the FTSE 100 index, the tendency of BP and the FTSE 100 index is almost the same. In 27 October 2011, both of them achieved the highest price. This is probably caused by the news that EU reached the agreement to solve the euro-zone crisis. The investors was encouraged by the news and become more active in the stock market. On the momentum of this positive trend, BP and FTSE 100 index performed pretty well, at 2 December, compared to the started date, it increased by 18.89% and 8.82% respectively.
The chart 2 above shows how the share price of BP changes weekly, and the figures indicate that BP performed pretty well during the last 9 weeks. There are some factors lead to the performance of BP; reported by the news of Regulatory News Services in 25 October 2011, the chief executive of BP claims that October 2011 is turning point for operations and productions, the company is increasing the divestments to $45 billion and targeting higher investment and distribution to shareholders (RNS, 2011). Then, with the positive effect of this news, in 28 October, the there was a big increase of BP’s share price, the figure raised to 467.2 become the highest price in this period.
Then, the share keeps a stable performance until BP announced in 18 November 2011 that it has agreed to sell its interests in Pompano and Mica fields in the deepwater Gulf of Mexico to Stone Energy Offshore. (RNS, 2011) This behavior of BP may give a negative affect to the confidence of its investors and caused decrease in BP’s share price, at the day of 25 November, the figure fell 41.8 compared to that in 28 October.
The share price of BP start to increase again as the BP get two oil and gas production sharing contracts from the government of Indonesia in 28 November 2011. (TendersInfo News, 2011) At 2 December, the share price of BP is 464.8, compared to the figure in 7 October 2011, it increased by 18.89%.
All in all, this share performed very well and brings a lot of capital gain to the portfolio.
3.2 Performance of Barclays Plc
The chart 3 above is showing the share price tendency between Barclays Bank and FTSE 100. These two lines similar, in 28th Oct, with the hope of solving the euro-zone crisis, FTSE100
