purpose of this report is to provide information on HSBC’s share price
development from 23 January 2017 to 23 January 2018. The analysis is based on stock
reports from Yahoo.com and provides insights about the company’s 12-month stock-market
performance and predictions on future trends.
Share price analysis
On January 23, 2017, HSBC’s share price was
valued at £6.70. The upward trend continued with a 6.27% increase until
February 20, due to President Trump’s announcement of de-regulations within the
financial sector and HSBC’s new UK CEO Ian Stuart.
on February 20th, share prices decreased sharply to £6.47 after the bank
revealed a steeper-than expected fall in annual profit. It announced a profit
before tax of £7.1 billion (£5.7bn) for 2016, down 62% compared to £18.9
billion for the previous year. Despite
occasional fluctuations, share prices have fallen significantly over the past
two months. The resignation of director Stuart Gulliver and Brexit outlooks
caused prices to reach a periodic low point at £6.25 on April 19.
to prevent further price drops included a £705.7 million buyback, which lead to a steadily increase in share prices from
April 24 onwards. Following this constant rise in value, HSBC showed strong
performance in its global business divisions and a 5% increase in pre-tax
profit helped the share price to grow to £7.7 on August 8.
then the share prices fluctuated with an underlying downward trend from September
to November. Nevertheless, the share price climbs steadily after the bank has
stated to provide £105.86 million in funds for social projects and launched a
corporate sustainable development bond. The news of its corporate social responsibility
was well received and the share price reached remarkable £7.85 on January 23.
HSBC’s share price grew considerably by 17.16% since January 2017. Due to its performance
improvements, buybacks and commitment to social responsibility, share prices
were able to recover from the initial low point in April 2017. Following the
company’s rapid share price rise over the past year, further growth is expected
by completing the share buyback program which is nearly completed after being
announced in June last year.