“HSBC Holdings plc 6-Month Share Analysis”
report is intended to analyze the development of HSBC Holdings plc’s share
prices over a six-month period starting from 20 February 2017 to 31 July 2017.
Data collected from “London Stock Exchange” and “Yahoo Finance” stock reports, outline
the trends and major prices movement within this timeframe which may be useful
to investors in predicting future developments.
Analysis of share prices:
20, 2017, HSBC Holding Plc stock was valued at £712.30. However, on February 21
it fell dramatically to £665.70 due to unexpected economic and political events
such as President Donald Trump’s election and uncertainty surrounding Brexit.
downward trend continued until February 27, marking a 62% decline in profits. However, from this point, the
price started to rise gradually, followed by frequent fluctuations. Thereafter,
the shares experienced again a steep drop, reaching the lowest value of this
six-month period. Nevertheless, an immediate increase appeared, showing a
significant improvement of the shares.
4 May 2017, HSBC reported a 19% fall in profit to £3.8 billion for the first
quarter which came as a result of a new restructured accounting program.
However, adjusted pre-tax profits went up by 12%, as well as adjusted revenue
by 2%. Since than, the price oscillated considerably until the end of the June.
Despite this occasional fluctuations, the share price soared again, hitting a
peak of £757 on July 31. Such positive results were also reflected in the
profit, which kept climbing up rapidly. This HSBC successful performance was
finalized with “World’s Best Bank Award” by the magazine Euromoney in its
annual Awards for Excellence 2017.
Forecast / conclusion:
Regardless of the erratic
variations, HSBC overall, has seen good results for the first half of 2017, experiencing
a 5% pre-tax profit growth to £7.8 billion.