Assignment financial markets (APC 313) january 2015

Bài assignment môn Financial Market APC 313 January 2015. Đánh giá về cung tiền của ngân hàng nhà nước và vai trò của trung gian tài chính trong cung ứng tiền tệ. Xác định lãi suất trong ngắn hạn và cân bằng thị trường tiền tệ.

Banking Academy, Vietnam ASSIGNMENT COVER SHEET UNIVERSITY OF SUNDERLAND BA (HONS) BANKING AND FINANCE Student ID: 149080615/1 Student Name: Tran Quyet Thang Module Code: APC 313 Module Name / Title: Financial Markets Centre / College: Banking Academy of Viet Nam Due Date: 16 Jan 2015 Hand in Date: 16 Jan 2015 Assignment Title: Individual assignment Students Signature: (you must sign this declaring that it is all your own work and all sources of information have been referenced) Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Title page Financial Markets APC 313 Banking Academy, Vietnam Submitted on January 16, 2015 Prepared by: Quyet Thang Tran Student ID: 149080615/1 Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Table of Contents Question 1.a: Explain what you understand by each of the following terms In each case give an example relating to the financial markets to illustrate your answer 1 Asymmetric information Moral hazard Quantitative easing Question 1.b: With close reference to your answer in part (a) above, discuss why there is a need to regulate financial markets Question 2: Distinguish between the spot and the forward foreign exchange rates How these rates are related and determined in the foreign exchange markets? Distinguish between spot rate and forward rate: There are several theories to determine the exchange rate: Interest rate parity (IRP): Law of one price: Purchasing power parity (PPP): Question 3.a: Explain the operations and activities of the London Stock Exchange (LSE) market Question 3.b: With close reference to the relevant theoretical and the empirical literature and your own financial data analysis critically assess the efficiency of this stock exchange market There are some empirical literatures of EMH research in London Stock Exchange (LSE) as follows: Access Intelligence plc 10 4imprint Group plc 11 Al Noor Hospitals Group PLC 13 Best of the Best plc 14 Question 3c: How might recent upward surges in the FTSE 100 share price index be explained? 16 Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Question 4a: Explain the operation and activities of the Money Market 17 Question 4.b: Explain how a central bank might use the Money Market to conduct monetary policy in order to target the rate of inflation 18 Reserve Requirement 19 Re-discount rate 19 Open market operation (OMO) 19 References 21 Appendix – Close price of Access Intelligence plc’s share from 24/09/14 to 22/12/2014 26 Appendix - Close price of 4imprint Group plc’s share from 24/09/14 to 22/12/2014 27 Appendix - Close price of Al Noor Hospital Group plc’s share from 24/09/14 to 22/12/2014 28 Appendix - Close price of Best of the Best plc’s share from 24/09/14 to 22/12/2014 29 Tables Table 1: Sport rate among VND and some foreign currency on 18/11/2014 Table 2: Spot rate and Forward rate Table 3: The formula in the interest rate parity Table 4: Example of Law of one price Table 5: The formula of relative PPP Table 6: The formula of International Fisher effect Figures Figure 1: Access Intelligence plc share price change (%) 24/09/14 to 22/12/2014 10 Figure 2: Access Intelligence plc share price from 24/09/14 to 22/12/2014 as an absolute amount 11 Figure 3: 4imprint Group plc share price change (%) from 24/09/14 to 22/12/2014 12 Figure 4: 4imprint Group plc share price from 24/09/14 to 22/12/2014 as an absolute amount 12 Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Figure 5: Al Noor Hospitals Group PLC share price change (%) from 24/09/14 to 22/12/2014 13 Figure 6: Al Noor Hospitals Group PLC share price from 24/09/14 to 22/12/2014 as an absolute amount 14 Figure 7: Best of the Best plc share price change (%) from 24/09/14 to 22/12/2014 14 Figure 8: Best of the Best plc share price from 24/09/14 to 22/12/2014 as an absolute amount 15 Figure 9: FTSE 100 index from 03/01/1984 to 08/01/2015 16 Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Question 1.a: Explain what you understand by each of the following terms In each case give an example relating to the financial markets to illustrate your answer  Asymmetric information  Moral hazard  Quantitative easing (QE) Answer: Asymmetric information Asymmetric information – a situation that arises when one party’s insufficient knowledge about the other party involved in a transaction makes it impossible to make accurate decisions when conducting the transaction (Mishkin & Eakins, 2012) For example, in stock market, managers of a corporation have more information about business activities and results which impact share price than investors Risk is the connection between asymmetric information and market failure (Howells, 2010) When asymmetric information happen, lenders lack information about what actually borrowers will with their money Therefore, lenders will charge high interest for loans for all borrowers to cover credit risk However, borrowers are not the same, some are very risky and some are not It means that for risky borrowers, this interest is still low while borrowers taking loans for legitimate purposes are charging highly This seems to be unfair The asymmetric information causes moral hazard and adverse selection There are many cases about asymmetric information in stock markets For example, the case of Bach Tuyet Cotton Corporation (BBT) in Vietnam stock exchange, its financial reports showed that the company was profitable, netting VND2.25 billion ($136,360) in 2006 and VND3 billion ($181,820) in 2007 while in actuality, combined losses exceeded VND17 billion ($1 million) (Nguyen, 2008) This company only announced good reports so investors lost their money Investors did not have right information about performance of BBT, they had to pay high price for low value shares This problem leads investors to lose the truth in investing Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Moral hazard Moral hazard arises after the transaction occurs: The lender runs the risk that the borrower will engage in activities that are undesirable from the lender’s point of view because they make it less likely that the loan will be paid back (Mishkin & Eakins, 2012) In addition, the regulation itself may promote moral hazard (Howells, 2010) For example, central banks play an important role as lender of last resort It means that banks would be provided reserves to prevent bank failures from spinning out of control (Mishkin & Eakins, 2012) Therefore, commercial banks could take risky activities without fear of running out of money During the 2008 financial crisis, Fed Chairman Ben S Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money confidentially (Keoun & Kuntz, 2011) Some analysts said that banks received emergency cash infusions during the crisis may now believe the Fed will always be there to bail them out of trouble, the thinking goes (Eichler, 2011) Herring, the University of Pennsylvania professor, added some banks may have used the program to maximize profits by borrowing from the cheapest source, because this was supposed to be secret and never revealed’ (Keoun & Kuntz, 2011) Quantitative easing Quantitative easing (QE) is an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets, like government bonds - this process aims to directly increase private sector spending in the economy and return inflation to target (Bank of England, 2014) During financial crisis, central banks want to reduce interest rate to stimulate businesses to make loans and consumers spending more instead of saving However, interest rate cannot be cut below zero because banks still need to make a profit and lenders want a greater return for the additional risk of granting a loan when times are tough (Financial Times , n.d.) In the case of Bank of England, inflation target is set about 2% to encourage business and consumer confidence About £325 billion of assets like government bonds of insurance companies, banks…were purchased after rounds of QE (RT, 2012) By doing this, the price of assets increase and the yield fall so the cost of borrowing goes down while spending and investment rises It means that businesses have money for operating and GDP and employment can raise However, there are some negative impacts on Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam annuities, pensions and inflation For example, annuity rates have fallen from 7.855% for a level income for a 65-year-old man in 2008 to 5.743% in 2012 (Insley, 2012) Question 1.b: With close reference to your answer in part (a) above, discuss why there is a need to regulate financial markets Because of asymmetric information in financial markets, depositors or investors will know less information compare to the one who use funds Therefore, some regulations are carried out to reduce the problems of asymmetric information One issue is the unclear information in financial reports In Vietnam financial markets, investors say that financial reports are not clear enough, especially the reports of state-owned enterprises, while the quality of the information provided by financial institutions is low (VietNamNet Bridge, 2014) Due to lack of information transparency, investors cannot carry out the right management strategy Therefore, they lost the confidence in financial markets These problems happen in many financial markets not only in Vietnam To protect investors, regulators need to design the legislations for listed companies to transparent information For example, EU Transparency Directive (2004/109/EC) requires a regular flow of information issuers of securities traded on regulated markets such as yearly, half-yearly and quarterly financial information, inside information has to be made public as soon as possible to the market, etc (European Commission , 2011) These regulations will help investors have better information for decision making about trading activities Furthermore, one of the main reasons for regulating financial markets is to stabilize financial market or reduce systemic risk Systemic risk is risk to the entire financial system rather than to individual firms or investors (Hubbard & O’Brien, 2012) For example, in banking systems, depositors have the right to withdraw their money in the banks whenever they want If there is any problems for banks, this will make depositors worry about their savings Therefore, they will withdraw all money in banks at the same time and it leads banks to become insolvent About £2bn has been withdrawn for a short time, when Northern Rock applied to the Bank of England for emergency funds because savers fear for their deposits (Eaglesham, et al., 2007) In addition, banks take deposits and lend not only firms, individuals but also other banks This means that the collapse of one bank could cause the failure of whole banking system and bring a lot of negative impacts to the whole economy Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam Question 2: Distinguish between the spot and the forward foreign exchange rates How these rates are related and determined in the foreign exchange markets? Answer: Spot rate: the immediate (two-day) exchange of bank deposits (Mishkin, 2013) Currency code Currency name VND AUD AUST.DOLLAR 18,562.56 EUR EURO 26,573.03 GBP BRITISH POUND 33,352.10 JPY JAPANESE YEN 182.54 USD US DOLLAR 21,360.00 Table 1: Sport rate among VND and some foreign currency on 18/11/2014 Source: Vietcombank, 2014 Based on this table, USD can be exchanged to 21,360VND on spot day 18/11/2014 or within two days as from 18/11/2014 Forward rate: the exchange rate of bank deposits at some specified future date (Mishkin, 2013) Distinguish between spot rate and forward rate: Spot rate Maturity Forward rate Make payments during days Make payments in month, months after the rate is quoted today or months after rate is quoted today Make payments for import or Demand for payments, transfer money export activities, services… or invest Purposes Demand foreign currencies for Hedging exchange rate fluctuations studying, working or holiday Table 2: Spot rate and Forward rate All the transactions in the spot date or days later could follow the spot foreign exchange rate It means that if your transaction happens today, you can use the spot rate to make payments today or tomorrow or days later While the forward rate could be Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam used for future payments or hedge funds to avoid fluctuation of exchange rate For example, you export a machine that cost $1,000 to US on 18/11/2014 and your customer will pay back a month later on 18/12/2014, so you can make a forward contract with a commercial bank to ensure that you can change $1,000 which you receive to VND by the exchange rate quoted on 18/11/2014 This action will help to prevent the exchange risk There are several theories to determine the exchange rate: Interest rate parity (IRP): The currency of the country in which interest rates are higher will be trading at a forward discount; the currency of the country with the lower interest rates will be at a forward premium (Howells & Bain, 2007) To prevent riskless arbitrage of investors, one currency will be regulated by increasing or decreasing the forward rate which depends on spot rate today The formula in the interest rate parity: Forward rate = 1+𝑖𝑠 1+𝑖𝑝 × spot rate is is the interest rate on secondary Where: currency ip is the interest rate on primary currency Table 3: The formula in the interest rate parity (Howells, 2010) For example: An investor has $10,000 and the interest rate in US and VN is respectively 3% and 14% per year Suppose that spot rate is USD/VND = 20.000 If this investor deposits $10,000 for a month, on due date he will receive $25 (equal to 500.000VND) In other case, the investor exchanges this money to 200 million VND and deposits it into a Vietnam commercial bank for a month like in US; on due date, the investor can get about 2.33 million VND If the exchange rate after a month does not change, the investor can have profit (more than 1.5 million VND) by depositing in VND In order to reduce the exchange risk, the investor could take a contract with a bank with a forward rate after month However, this riskless arbitrage will be prevented by adjusting the forward rate after a month following the formula above Finance Markets (APC 313) – January 2015 Banking Academy, Vietnam There is no correlation between the change of share price with time due to correlation index r = 0.128 (a small value nearly to 0) Moreover, through this figure, it can be seen that share price of this company move unpredictably and not follow any rules It means that LSE is weak form EMH Figure 8: Best of the Best plc share price from 24/09/14 to 22/12/2014 as an absolute amount Pence Sterling (GBX) 90 85 80 75 70 65 60 24-Sep-14 10-Oct-14 26-Oct-14 11-Nov-14 27-Nov-14 13-Dec-14 Source: Modified from Yahoo Finance, 2014 According to LSE, on 13/11/2014, after announcing the result of general meeting – the resolution put to shareholders duly passed without amendment, share price increases by 3.98% It means that share price reflects the current information Another example is when the company releases Special Dividend & Capital Reduction, Best Of The Best shares were up 2.2% to 87.93 pence per share on Wednesday afternoon – 10/12/2014 (Warner, 2014) In conclusion, based on the results of analyzing the daily share price of five listed companies on LSE, it can be seen clearly that the share price change is reflected by price in the past and not follow any rules or frequencies It means that LSE is weakform EMH Furthermore, the current share price also shows the current information such as announcements, annual reports…Therefore, LSE also represents semi-strong form EMH Finance Markets (APC 313) – January 2015 15 Banking Academy, Vietnam Question 3c: How might recent upward surges in the FTSE 100 share price index be explained? The Financial Times Stock Exchange (FTSE) 100 share index; an average of share prices in the 100 largest, most actively traded companies on the London Stock Exchange (FT, 2015) Furthermore, FTSE 100 index, representing approximately 80% of London’s stock market capitalization, has taken over from the older FT Ordinary share index which was also based on just 30 shares (Galitz, 2013) By comparing the shares in portfolio and FTSE 100 index, investors can evaluate how well the performance of share that they hold is Figure 9: FTSE 100 index from 03/01/1984 to 08/01/2015 6900 5900 4900 3900 2900 1900 900 03-Jan-84 03-Jan-89 03-Jan-94 03-Jan-99 03-Jan-04 03-Jan-09 03-Jan-14 Source: Yahoo Finance, 2015 It can been seen clearly that the current upward surges in the FTSE 100 share price index is period from 2010 to now This is also the time that Bank of England use quantitative easing (QE) to repurchase gilts in order to stimulate whole economy Beside the primary purposes such as growing economy, increasing employment; quantitative easing also makes the share prices increase and causes stock market to boom According to Mr Ralfe, by the end of the first round of QE1 in January 2010, FTSE had risen a massive 42% to 5,188 and when QE2 began and in the interim period, the FTSE had crawled up by 7% to 5,544 (Cohen, 2012) There are several reasons to explain why QE can help stock market go up Finance Markets (APC 313) – January 2015 16 Banking Academy, Vietnam  Firstly, QE provides money for the businesses with low interest rate so that their works and operations can be rehabilitated This leads the securities more attractive for investors especially stocks of big companies in FTSE 100  Secondly, QE brings a lot of positive impacts for economy so investors become more confident in stock market and take more trading activities This action leads stock price to increase  Third, banks also are supplied more money through QE operations so beside lend to the businesses, banks can invest in strong securities in FTSE 100 In conclusion, with the support of QE operations, the stock market is helped and recovered By using extra money from QE investing in good performance of securities especially in 100 largest companies, FTSE 100 index is leaded to go up Question 4a: Explain the operation and activities of the Money Market Why is there a need for such a market? Answer: Financial markets are divided into two different types of market by considering the maturity of financial assets which are traded in these markets The money market is a market place for instruments which have a very short maturity when initially issued, generally less than three months (Howells & Bain, 2005) On the other side, there is capital market for medium and long term instruments to meet the capital demands for long-term investments of corporations In money markets, funds can move from lenders to borrowers by a second route, called indirect finance because it involves a financial intermediary that stands between the lender-saver and the borrower-spenders and helps transfer funds from on to the other (Mishkin, 2013) The financial intermediaries include commercial banks, investment banks, credit unions, insurance company, etc Through money markets, surplus funds will be invested for a short time and borrowers can raise temporary funds with low cost but high liquidity and low default risk However, the value of securities on money market are usually numerous In the United States, for example, commercial paper is issued in maturities of to 270 days, and in denominations that are deemed too large for retail investors (typically $1 million, but sometimes as small as $10,000) (Dodd, 2012) Finance Markets (APC 313) – January 2015 17 Banking Academy, Vietnam Because of high value transactions and high reputable quality of financial instruments, there are only few key participants such as governments, large corporations, commercial banks…in money markets For example, commercial banks can sell T-bills to raise funds for a temporary lack of cash Furthermore, banks can hold money market instruments like an investment without fear of running out of cash for both expected and unexpected demands Governments sell T-bills in order to raise funds for national debts For instance, recently Vietnam sold $1 billion of 10-year securities abroad for the first time in almost five years to refinance the existing debt (Karunungan & D’silva, 2014) In addition, the money market have to fulfil two functions: firstly, achieving a primary function of obsorving new issued securities, which enable borrowers to raise new funds; secondly, carrying out a secondary function of allowing holders of existing securities to sell them to those who wish to buy (Howells & Bain, 2007) For example, T-bills will be issued in the primary market by treasury While in secondary market, some trading activities can happen such as investing, arbitrating, and speculating One of the importance of money market is a distinct cost advantage over banking industry because banks have to obtain server requirement This means that banks cannot lend out all of money that they collect from depositors It leads expense of banks to increase so to cover this extra expense, banks have to set the lending rate higher for ensuring profitability While in money market, borrowers are not charged this type of expense, therefore they can take cost advantage over banks In addition, money market also play an important role as a framework for central banks conduct monetary policy Monetary policy involves the management of interest rates and the quantity of money, also referred to as the money supply (defined as anything that is generally accepted in payment for goods and services or in the repayment of debt) (Mishkin & Eakins, 2012) Question 4.b: Explain how a central bank might use the Money Market to conduct monetary policy in order to target the rate of inflation Answer: To implement the monetary policy, State Bank could use some money market instruments to influence the rate of interest These instruments include: reserve requirement, re-discount rate and open market operation (OMO) Finance Markets (APC 313) – January 2015 18 Banking Academy, Vietnam Reserve Requirement All banks have to hold some of the funds they acquire as deposits in an account in Central Banks (Mishkin, 2013) It means that the banks cannot lend out all the money that they collect from savers Changes in reserve requirements affect money supply by causing the money supply multiplier to change (Mishkin, 2013) Its impacts can be seen as follows:  Firstly, a raise in reserve requirements, the banks need to put more money in the account in Central bank so the ability to make loans will be reduced and lead money supply in the economy decrease  Secondly, reserve requirements act as a tax on bank intermediation because central banks not pay interest for this deposits and it causes cost increase (Howells & Bain, 2007) Therefore, the banks have to raise the interest rate However, changes in reserve requirements have such large effects on money supply and interest rates (Mishkin, 2013) so this is less flexible instrument Re-discount rate This is also called the discount window – the situation where central banks lend directly to banks (Howells & Bain, 2007) To use this instrument, central banks have to consider carefully about the rate and the conditions However, if there is no shortage of reserve, banks will not need to borrow from the discount window and loan rate will not rise (Howells & Bain, 2007) The changes in the discount rate can impact to demand for reserve of banks If for commercial banks the rate is ‘low’ relative to what they can charge for loans, they are likely to borrow a great deal of reserves and expand their lending rapidly (Howells & Bain, 2007) Furthermore, with “low” discount rate, cost for funds of banks will decrease, so they could reduce lending rate and it leads to the increase in demand of credit In addition, central banks have to post or announce the rate for discount window borrowing (Howells & Bain, 2007), so the future monetary policy – expansion or contraction - can be foreseen Open market operation (OMO) “Open market operations are the most important conventional monetary policy tool, because they are the primary determinants of changes in interest rates and the monetary base, the main source of fluctuations in the money supply” (Mishkin & Eakins, 2012) Finance Markets (APC 313) – January 2015 19 Banking Academy, Vietnam If central banks want to increase the money supply, they will inject money to the markets by purchasing bills This will make serves of banks increase, so they will be able to make more loans with low-interest rate In opposite, selling activities will cause the interest rate raise The instruments can be used in OMO market could be government bonds, T-bills, repurchase agreements…This is a flexible tool for central banks to conduct monetary policy In conclusion, by applying these financial instruments, central banks can directly impact the interest rate and the money supply in the economy so that the macro targets such as stabling inflation, increasing employment and growing economy can be achieved Finance Markets (APC 313) – January 2015 20 Banking Academy, Vietnam References 4imprint Group, Available at: 2015 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Historical Prices [Online] Available at: https://finance.yahoo.com/q/hp?s=FOUR.L+Historical+Prices [Accessed 20 12 2014] Finance Markets (APC 313) – January 2015 24 Banking Academy, Vietnam Yahoo Finance, 2014 Access Intelligence plc (ACC.L) - Historical Price [Online] Available at: https://finance.yahoo.com/q/hp?s=ACC.L&a=08&b=24&c=2014&d=11&e=22&f=20 14&g=d [Accessed 20 12 2014] Yahoo Finance, 2014 Al Noor Hospitals Group Plc (ANH.L) - Historical Price [Online] Available at: https://finance.yahoo.com/q/hp?s=ANH.L+Historical+Prices [Accessed 20 12 2014] Yahoo Finance, 2014 Best of the Best Plc (BEST.L) - Historical Price [Online] Available at: https://finance.yahoo.com/q/hp?s=BEST.L+Historical+Prices [Accessed 21 12 2014] Yahoo Finance, 2015 FTSE 100 (^FTSE) - Basic Chart Available [Online] at: https://uk.finance.yahoo.com/q/bc?s=%5EFTSE&t=my&l=on&z=l&q=l&c= [Accessed 08 01 2015] Finance Markets (APC 313) – January 2015 25 Banking Academy, Vietnam Appendix – Close price of Access Intelligence plc’s share from 24/09/14 to 22/12/2014 Date 22Dec-14 19Dec-14 18Dec-14 17Dec-14 16Dec-14 15Dec-14 12Dec-14 11Dec-14 10Dec-14 9Dec-14 8Dec-14 5Dec-14 4Dec-14 3Dec-14 2Dec-14 1Dec-14 Price Date 282.84 Nov-14 273 Nov-14 263 Nov-14 252.84 Nov-14 242.83 Nov-14 212.86 Nov-14 203.04 Nov-14 193 Nov-14 183.14 Nov-14 173.42 Nov-14 142.88 Nov-14 132.75 Nov-14 123 Nov-14 113 Nov-14 103 Nov-14 72.31 Nov-14 Currency Price 2.31 2.31 2.62 2.62 2.62 2.45 2.33 2.33 2.65 2.65 2.25 2.46 2.25 2.25 2.25 2.35 Date 6Nov-14 5Nov-14 4Nov-14 3Nov-14 31Oct-14 30Oct-14 29Oct-14 28Oct-14 27Oct-14 24Oct-14 23Oct-14 22Oct-14 21Oct-14 20Oct-14 17Oct-14 16Oct-14 Price Date 152.5 Oct-14 142.5 Oct-14 132.5 Oct-14 102.7 Oct-14 92.5 Oct-14 82.74 Oct-14 72.74 Oct-14 62.74 Oct-14 32.5 Oct-14 22.36 Oct-14 12.36 Oct-14 302.6 Sep-14 292.45 Sep-14 262.37 Sep-14 252.5 Sep-14 242.5 Sep-14 GBX Price 2.5 2.62 2.5 2.54 2.8 2.88 2.88 2.88 2.88 3 2.75 2.75 2.75 2.75 Source: Yahoo Finance, 2014 Finance Markets (APC 313) – January 2015 26 Banking Academy, Vietnam Appendix - Close price of 4imprint Group plc’s share from 24/09/14 to 22/12/2014 Date 22Dec-14 19Dec-14 18Dec-14 17Dec-14 16Dec-14 15Dec-14 12Dec-14 11Dec-14 10Dec-14 9-Dec14 8-Dec14 5-Dec14 4-Dec14 3-Dec14 2-Dec14 1-Dec14 Price 782 782 800 824 800 800 830 847.79 840 843 831.5 839 835 835.5 845 827.5 Date 28Nov-14 27Nov-14 26Nov-14 25Nov-14 24Nov-14 21Nov-14 20Nov-14 19Nov-14 18Nov-14 17Nov-14 14Nov-14 13Nov-14 12Nov-14 11Nov-14 10Nov-14 7Nov-14 Price 829 796.95 795 784.5 780 780 794 781.5 780 790 793.5 780 790 780 780.5 780 Currency Date 6Nov-14 5Nov-14 4Nov-14 3Nov-14 31Oct-14 30Oct-14 29Oct-14 28Oct-14 27Oct-14 24Oct-14 23Oct-14 22Oct-14 21Oct-14 20Oct-14 17Oct-14 16Oct-14 Price 781.5 781.5 785 789.5 791.76 787.5 785 785 783.5 785 688 673.5 670 666.5 667 655 Date 15Oct-14 14Oct-14 13Oct-14 10Oct-14 9-Oct14 8-Oct14 7-Oct14 6-Oct14 3-Oct14 2-Oct14 1-Oct14 30Sep-14 29Sep-14 26Sep-14 25Sep-14 24Sep-14 Price 666.5 684.75 685 693 697 695 701 711.12 725.5 739.5 730.5 742 735.5 741.5 749.5 740.5 GBX Source: Yahoo Finance, 2014 Finance Markets (APC 313) – January 2015 27 Banking Academy, Vietnam Appendix - Close price of Al Noor Hospital Group plc’s share from 24/09/14 to 22/12/2014 Date 22Dec-14 19Dec-14 18Dec-14 17Dec-14 16Dec-14 15Dec-14 12Dec-14 11Dec-14 10Dec-14 9Dec-14 8Dec-14 5Dec-14 4Dec-14 3Dec-14 2Dec-14 1Dec-14 Price 1,000 970.04 953.5 929 930 934.5 943.5 948.21 950 935.5 940 940 940 940.5 964 980.38 Date 28Nov-14 27Nov-14 26Nov-14 25Nov-14 24Nov-14 21Nov-14 20Nov-14 19Nov-14 18Nov-14 17Nov-14 14Nov-14 13Nov-14 12Nov-14 11Nov-14 10Nov-14 7Nov-14 Price 989 982 986 999 997 1,000 1,000 989 993.5 989 996 994 993.5 1,018 1,023 1,009 Currency Date 6Nov-14 5Nov-14 4Nov-14 3Nov-14 31Oct-14 30Oct-14 29Oct-14 28Oct-14 27Oct-14 24Oct-14 23Oct-14 22Oct-14 21Oct-14 20Oct-14 17Oct-14 16Oct-14 Price 1,005 1,018 1,016 1,021 1,019 993 992 989.5 964.5 980 981 993.5 979.5 980 958 956 Date 15Oct-14 14Oct-14 13Oct-14 10Oct-14 9Oct-14 8Oct-14 7Oct-14 6Oct-14 3Oct-14 2Oct-14 1Oct-14 30Sep-14 29Sep-14 26Sep-14 25Sep-14 24Sep-14 Price 975 980 978 990 1,009 999.5 992.5 1,006 1,012 994.5 1,000 1,018 1,089 1,069 1,077 1,050.91 GBX Source: Yahoo Finance, 2014 Finance Markets (APC 313) – January 2015 28 Banking Academy, Vietnam Appendix - Close price of Best of the Best plc’s share from 24/09/14 to 22/12/2014 Date 22Dec-14 19Dec-14 18Dec-14 17Dec-14 16Dec-14 15Dec-14 12Dec-14 11Dec-14 10Dec-14 9-Dec14 8-Dec14 5-Dec14 4-Dec14 3-Dec14 2-Dec14 1-Dec14 Price 66 66 66 66 66 71.5 76 76 88.5 86 87.5 85 85 85 85 86 Date 28Nov-14 27Nov-14 26Nov-14 25Nov-14 24Nov-14 21Nov-14 20Nov-14 19Nov-14 18Nov-14 17Nov-14 14Nov-14 13Nov-14 12Nov-14 11Nov-14 10Nov-14 7Nov-14 Price 82 82 82 81.5 80 77.5 77.5 77.5 77.5 77.5 78.5 80.5 83 76 72.5 72.5 Currency Date 6Nov-14 5Nov-14 4Nov-14 3Nov-14 31Oct-14 30Oct-14 29Oct-14 28Oct-14 27Oct-14 24Oct-14 23Oct-14 22Oct-14 21Oct-14 20Oct-14 17Oct-14 16Oct-14 Price 72.5 72.5 72.5 66.5 66 66 66 66 66 66 66 66 65 65 65 65 Date 15Oct-14 14Oct-14 13Oct-14 10Oct-14 9-Oct14 8-Oct14 7-Oct14 6-Oct14 3-Oct14 2-Oct14 1-Oct14 30Sep-14 29Sep-14 26Sep-14 25Sep-14 24Sep-14 Price 66.5 65 66 66 66 66 66 66.5 66.5 66.5 66.5 66.5 66.5 64.5 66.5 67 GBX Source: Yahoo Finance, 2014 Finance Markets (APC 313) – January 2015 29 ... 22Dec-14 19Dec-14 18Dec-14 17Dec-14 16Dec-14 15Dec-14 12Dec-14 11Dec-14 10Dec-14 9Dec-14 8Dec-14 5Dec-14 4Dec-14 3Dec-14 2Dec-14 1Dec-14 Price Date 282.84 Nov-14 273 Nov-14 263 Nov-14 252.84 Nov-14... 6Nov-14 5Nov-14 4Nov-14 3Nov-14 31Oct-14 30Oct-14 29Oct-14 28Oct-14 27Oct-14 24Oct-14 23Oct-14 22Oct-14 21Oct-14 20Oct-14 17Oct-14 16Oct-14 Price Date 152.5 Oct-14 142.5 Oct-14 132.5 Oct-14 102.7... Sterling (GBX) 900 850 800 750 700 650 24-Sep-14 10-Oct-14 26-Oct-14 11-Nov-14 27-Nov-14 13-Dec-14 Source: Yahoo Finance, 2014 Finance Markets (APC 313) – January 2015 12 Banking Academy, Vietnam On