FINANCIAL MARKET ANALYSIS
INSTRUCTION:
- This is an individual assignment.
- A hard copy MUST be presented to the lecturer on the due date.
- The APA format MUST be maintained, and a declaration of authorship must be made.
You are a Financial Analyst that has been appointed to lead a team in the production of a report
to some potential investors regarding participating in the financial market.
You are required to provide information on the following sections: Financial markets homework help
Section A – (Total 10 marks)
- An Overview of Financial Markets
- The role of the Stock Market
- Benefits of participating in the Stock Market from an investor perspective.
Section B – Select one of the following group of companies currently listed on the Jamaica Stock
Exchange (JSE) to conduct an analysis. (Total 60 marks)
Group 1
Salada Foods Ltd and Seprod Ltd
The analysis will include the following:
- A brief overview of the companies selected. (5 marks)
- Daily recordings of the trade volume, opening and closing price, percentage change in
price and whether the stock advance, decline or traded firm for each company over a two-week period, beginning March 14 – 25, 2022. (20 marks)
Use the prices recorded to form an index for each company, then construct the following:
- A price-weighted index for the two stocks and compute the percentage changes in the index for period 1 (Week 1) and period 2 (Week 2) (10 marks)
- A value-weighted index for the two stocks and compute the percentage changes
in the index for period 1 (Week 1) and period 2 (Week 2) (10 marks)
- Explain the factors that you believe may have affected the share prices on the
market for both companies during period 1 and 2 (15 marks)
Section C – Financial Viability (Total 30 marks)
Assess the financial viability of the two companies given above by performing a company and security analysis to determine if the stocks are over-valued or under-valued based on information
gathered from:
- a) The stock’s price-earnings ratio (5 marks)
- b) The Price-Earnings Growth ratio (10 marks)
- c) The interest rate of the country (5 marks)
- d) Market capitalization to GDP (5 marks)
- e) The company’s activities, and revenues and profits generated (5 marks)
(Total 100 marks) Financial markets homework help
