NYSE-w16

8/7/2019 NYSE-w16

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Market Overview: NYSE 2011, wk. 16

Highlights:

During the week 16 NYA index raised by 1.24% Melco Crown Entertainment Ltd.(MPEL) increased in stock price by9.17%

Xerox Corp. (XRX) lost 4.75% of its share value this week

Week 16 was untraditionally short due to the Easter holidays, so New York Stock Exchange wasopen only four days and closed the trading week on Thursday. NYA index after a fall last week

started at level of 8 400.31 points this Monday, having a rapid downfall and afterwards recoveringand increasing the value throughout the week 16, reaching 8 504.36 points as closing value onThursday. The total gain in value accumulated in 1.24%. In general, the market has recovered after 0.99% decrease last week.

Chart 1: NYA (NYSE Composite index) change during week 16. Source: finance.yahoo.com

The same tendencies can be observed in S&P 500 (GSPC) and Dow Jones Industrial Average

(DJI) indices. An increase of 1.34% and 1.33% respectively can be monitored there. The tradingvolume in NYSE was only 15, 933, 560, 000 USD this week, that is only 3 983 390 000 USD per day, which is far below the average volume for the last three months of 5,873,480,000 USD.

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained init. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.

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Chart 2: NYA (NYSE Composite index), DJI (Dow Jones Industrial Average) and S&P 500 (GSPC) change

during week 16. Source: finance.yahoo.com

The best performer of the week 16 was the second best gainer of week 15, namely Melco Crown

Entertainment Ltd. (MPEL) with a 9.17% increase in share price. The list of top companies wasfollowed by Intel Corporation (INTC) with 8.67% rise in market value and Micron Technology

Inc. (MU) which went up by 7.16%. Conversely, the biggest looser of the week was Xerox Corp.(XRX) which lost 4.75% of its stock price. Wells Fargo & Company (WFC) was the secondworst performing company, having a 4.52% decline in its market value.

Week 16 biggest loser, Xerox Corporation (XRX) is a $22 billion leading global enterprise for business process and document management. The company started the week with a price of 10.73USD per share, ending with a closing value of 10.22 USD on Thursday. The big change incompany’s stock prices, which took place on 20th and 21st of April, was most likely connected witha publication of company performance results for the first quarter of 2011. As company hadannounced that the report would be available before the market opens on April 21, 2011, stock

prices increased rapidly: by 2.8% during one night. It might reflect optimism of investors. Also

during 20th

of April prices were still rising. However, instantly after the report was published - prices collapsed. Report showed a first-quarter revenue of nearly $5.5 billion and includes adjustedearnings per share of 23 cents. This information could not be seen as sign of weak result ascompany continually improves its financial performance. Although, the expectations could have

been higher and shareholders might not be fully satisfied with such growth rates as, for instance in previous year’s fourth quarter Xerox earned a profit of 29 cents per share which is 6 cents per sharehigher than this year, thus the decline in market value followed.


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Chart 3: XRX change during week 16. Source: finance.yahoo.com

The top-gainer of week 16, Melco Crown Entertainment Ltd. (MPEL), an owner and developer of casino gaming and entertainment resort facilities that are focused on the rapidly expandinggaming market found in Macau (China).

Chart 4: MPEL change during the week 16. Source: finance.yahoo.com


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The opening stock price this Monday was 9.16 USD per share and already that day it skyrocketeduntil the level of 9.61 USD. The positive tendency followed on until the end of the week,accumulating in price of 10.0 USD which was the closing value for both Wednesday and Thursday,so share has reached its peak in week 16, with a 9.17% gain. The reason for raise in the marketvalue could be that on Monday, April 18th the Macau’s First-quarter gaining revenues were

published. The data provided there is very promising, as the total revenue for the first quarter hasincreased from 41,248 (in 2010) to 58,835 (in 2011), measured in millions of Macau Patacas. Thegaming and entertainment resorts market in general is going up and MPEL is performing better thanits main competitors, so no surprise - the price value of MPEL is rising.

The second follower of best performer was Intel Corporation (INTC), an American globaltechnology company and the world's largest semiconductor chip maker. This week was very

surprising for investors as on the 20 th of April share prices rose for astonishing 7.8% in only onenight. All the other time during the week prices were increasing slowly, but constantly.

Chart 5: INTC change during week 16. Source: finance.yahoo.com

Such a rapid increase in share prices during one night can be explained by the fact that Intelreported first-quarter results and issued second-quarter guidance so substantially above marketexpectations. As almost all the analysts predicted PC chip sales decrease due to weak industryreports, Intel on contrary reported a jump in PC chip sales. As Intel is one of the leading PC chipmanufacturers such a report even triggered a debate on the true state of the personal computer market, which currently might be undervalued.


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The main indexes which reflect to USA market had an increase of 1.24% this week, thus a smalldecline in NYA, DJI and GSPC values might be expected to follow in week 17. As in spite of thequarter reports published, the trading volume wasn’t high, the main leaders are likely to slightlykeep going up in week 17. However the peak for MPEL performing was probably seen in week 16as price was relatively stable during the 2 last trading days, thus a small drop in market value canoccur further for this company. With the end of Easter holidays and return to normal tradingschedule, the volume of trades is expected to rise as well.

Review by: Aleksejs Razživins, Andrejs Zavertjajev, Santa Kratule


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NYSE-w16