The most popular share portfolio in Australia is Tyndall Australia share portfolio that encourages investors to invest 2,000 million dollars and above. This fund is extremely reliable and uses unique values through ensuring that the traded shares rank among the top in the Australian Securities Exchange (ASX) market. Most companies in Australia falling under different sectors seek to increase their share values through encouraging many investors into their organization although; some end up selling at terrifically low prices, closing as low as $100. All businesses from different sectors, be it financial sector, resource sector, consumer sector, and health care sector manage to achieve specified organizational goals. These companies have what they regard as their core business activities thus; all other activities and functions in the organization appear in line with organizational goal. Production and operations are key functions in services business, which aim at attaining the business goal in a cost-effective way while giving regard to time limits and quality of service. The manager today has to make crucial decisions regarding business opportunities every single day since the stock market keeps on shifting from one sector to another (2003).
The selected companies are Commonwealth Bank that falls under the financial sector and Newcrest Mining Limited that falls under the resource sector. Newcrest Mining Limited is a gold mining company and has most shares in the mineral sector in Australia. In June 2011, the company recorded a market cap of 28,864 million US dollars falling in the third place after BHP Billiton and Rio Tinto who took the first and second position consecutively. The commonwealth Bank ranked among the top 100 best financial institutions in June 2011. The financial sector forms the biggest industry in Australia creating a very stiff competition among many financial institutions in Australia. At the closing of business on March 2nd 2012, Commonwealth recorded a share price of $20,161 while Newcrest Mining recorded a share price of $15,210 (ASX, 2012).
The main reason why people invest is to get into an investment trend, take risks involved in investing, and keep a follow-up of the share prices. Commonwealth Bank of Australia has the highest number of shareholder in Australia’s financial sector that gives it a chance to have the highest share prices. ASX gets most of its revenues from financial and resource sectors. Newcrest Mining Limited specializes in gold mining allowing it to fetch a lot of money from the sale of the precious stones. Looking at the financial trend of ASX from March to May 2012, ASX traded a lot of shares from different companies in Australia. From March 2nd, the share market has shown some improvement especially in the financial sector due to increased currency value. On 3rd March, Commonwealth Bank of Australia closed at share value of $25,215 compared to that of $20,161 on March 2nd. On the other hand, Newcrest closed at share value of $17,200 compared to the previous value of $15,120.
The value of share portfolio can be maximized through ensuring the investors know the importance of trading with their shares and encouraging people to buy shares from a given company. In addition, share portfolio value assists in improving many businesses and helps them compete among one another both locally and internationally. Understanding the shareholder’s interest is of considerable importance as it gives a company an opportunity to offer what consumers need and in a precise manner (Maureen, 2005).
Cited Work
ASX. Commonwealth Bank of Australia (CBA): Newcrest Mining Limited (NCM). 2012.
Retrieved from:
http://www.asx.com
Lewis M. & Slack N., Operations Management: Critical Perspectives on
Business and Management. London: Routledge. 2003.
Maureen, S. Maximizing shareholder Value: What are Shareholders’ Interests? CasePlace.Org.
2005. Retrieved from:
http://www.caseplace.org/d.asp?d=2797
