“HSBC Holdings plc 6-Month Share Analysis” Introduction: Thisreport is intended to analyze the development of HSBC Holdings plc’s shareprices 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 beuseful to investors in predicting future developments. Analysis of share prices: OnFebruary 20, 2017, HSBC Holding Plc stock was valued at £712.30. However, onFebruary 21 it fell dramatically to £665.
70 due to unexpected economic andpolitical events such as President Donald Trump’s election and uncertaintysurrounding Brexit. This downward trendcontinued until February 27, marking a 62% decline in profits. From this point,the price started to rise gradually, followed by frequent fluctuations. Afterwards,the shares experienced again a steep drop, reaching the lowest value of this period(620.80).
Nevertheless, an immediate increase appeared again, showing asignificant improvement of the shares. Thereafter,on May 4, 2017, HSBC reported a 19% fall in profit to £3.8 billion for thefirst 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 revenueby 2%. Since then, the price oscillated considerably until the end of the June. Despitethese occasional fluctuations, the share price soared again, hitting a peak of£757 on July 31. Such positive results were also reflected in the profit, whichkept climbing up rapidly. This HSBC successful performance was finalized with”World’s Best Bank Award” by the magazine Euromoney in its annual Awards for Excellence2017.
Conclusion: Regardless of the erraticvariations, HSBC has seen good results overall for the firsthalf of 2017, experiencing a 5% pre-tax profit growth to £7.8 billion.Additionally, the second half of 2017 and also the beginning of 2018 havefollowed the same pattern of increase, but reaching even higher values in shareprices.
Therefore, we strongly believe that HSBC will keepimproving at the same positive pace in the coming months.