1. Planning 2
1.1. Introduction 2
1.2 Companies selected for project 2
1.3 Justification for choices 4
1.4 Approach to the project 5
1.5 Plan for carrying out project 6
1.6 Resources required 7
2. Developing 8 2.1 Project Plan 8 2.2 Issues being considered for research 9
2.3 Methods to be used for carrying out research 10
2.4 Details of information gathered to date 10
3. Evaluation 11
3.1 Criteria for evaluation 11
3.1.1Fundamental Analysis 12
3.1.2 Technical Analysis 14
3.2Market Performance 14
3.3 Sector performance and Share performance and reasons for price variances 16
3.3.1Life insurance sector and AVIVA 16
3.3.2 Bank Industry sector and HSBC 22
3.3.3 Food and Drugs Retailer Sector and TESCO 28
3.3.4 Oil and Gas Producers Sector and BP 32
3.4 The future performance of the companies 37
3.4.1 AVIVA 37
3.4.2 HSBC 37
3.4.3 TESCO 38
3.4.4 BP 39
3.5 Conclusion 39
3.5.1 Investment Result. 39
3.5.2 Conclusion for this project. 40
References 41 websites 41
1. Planning
1.1. Introduction
This project mainly involves the detailed stock information of the 4 listed companies from those featuring in the FTSE 100 stock index during the period from 3rd January to 3rd April.
In this project, as a project student, I get a nominal sum of ￡100,000 which will be split equally into the 4 company shares. It is aim to analyzing factors which lead to the rise and fall of the share price, and helping us recognize the benefit and risk of stock market. In addition, according to this project, I can take the more accurate and comprehensive view to analyze and evaluate the share performance, and then better apply the theoretical knowledge into practice.
1.2 Companies selected for project
The 4 companies are given as follows:
AVIVA
AVIVA is in the Life insurance industry, The Company's main business is general and life insurance as well as long-term savings and fund management. It has around £379 billion of assets under management. The group has 46,000 employees, serving 53 million customers worldwide.
HSBC
HSBC belong to bank sector, it is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
TESCO
TESCO belongs to Food& Drug Retailer field, is a global grocery and general merchandising retailer. It has stores in 14 countries across Europe, Asia, and North America. It has diversified both geographically and into areas like the retailing of books, clothing, electronics, furniture, petrol and software. Their operating profit increase year by year, the profit is over £3billon in 2010.
BP
BP is third-largest energy company which belong to Oil &Gas producer industry. It is a global oil and gas company headquartered in London. It is vertically-integrated and active in every filed of oil ad gas industry like exploration, production, refining. It current invests more than $1 billion per year for the development of renewable energy source. Also it has committed to spend $8 billion on renewable source in the period from 2005 to 2015 The following chart shows the detailed buying information about these companies.
Company name sector Price(￡)
No. of shares purchased cost(￡) AVIVA
Life Insurance
4.069
6150
25024.35
HSBC
Bank
6.681
3700
24719.7
TESCO
Food & Drug Retailer
4.331
5800
25119.8
BP
Oil &Gas
4.929
5050
24891.45
Total cost
99755.3
1.3 Justification for choices
In this project, I will use the top-down research to select 4 companies from FTSE100 index in 4 different industries. More specifically, I firstly define the 4 industries which show good performance, then I will choose the 4 firms with powerful strength and high profitability from the selected trades.
Initially, the four related industry are predicted to have big potential and
