The a2 milk share price today has been one of the most happening news of the day as it has been one of those companies which is consistently on the lookout for a lot of investors. However, in the recent times we have seen quiet a dramatic change in the share prices of the companies which is why we are here to discuss the possible reasons as to why there has been a fluctuation in the share price of a2 Milk Company. Let’s find out what are those;
- Banks Interest Rate
Bank rates have a lot to play with the share prices change in the market. This is mainly because when the rates are too high, loan facility is not provided easily to people and a lot of people cannot as well afford to go for credit facilities. As a result, less money is borrowed and hence, less is invested in companies. If the bank rate is lower, majority of the people are able to go for credit facilities and would subsequently be available to invest in securities. Both of these factors impact the change in price of shares of any company.
- Financial Position
One of the biggest factors that matters to any investor before investing in any company is the fact that they always look at the financial health of a company. If the financial position and profitability of the company is not sufficient or if the past trends of the company has not been stable, no investor would want to pitch in their money in purchasing the shares of the company. If the position of the company is healthy, more and more people will purchase the shares and as a result of more demand of shares, the prices of the shares also increases.
- Political Changes
The stock market is very volatile mainly because of the political influence as well. If a news of war or any other negative news has been spread out in the country, the prices of shares tend to fall and vice versa. Same is the case when tax announcements occurs by the federal minister which also results in change in share prices of any company.
- Resignation or Appointment of a Director
The directors of any company are known in the market and thus, their position plays a vital role in fluctuation of the share prices. If a well-known director who has a good standing in the industry resigns, the share prices of that particular company falls as people tend to have the confidence removed from the company. And if a company has hired a new person who has a good position in the market, the share prices would automatically increase. 