By Goddy Egene
The aggregate return on the THISDAY Model Portfolio (TMP) rose to 38.1 per cent last week as the equities market hit a new high. The performance, which shows the resilience of stocks in the portfolios, was 5.5 per cent higher than the 32.6 per cent level it was two weeks ago. An analysis of the TMP showed that all the five portfolios recorded growth last week.
TMP is an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), designed to enable leading stockbrokers and investment houses in the country share their trading skills and methodologies with ordinary investors. The investment houses involved in the project are Afrinvest Limited, FSDH Securities Limited, Capital Assets Limited, Meristem Limited and Lead Advisory Limited .
TMP consists of five different portfolio types constructed individually in conjunction with five leading stockbroking firms in the country with different investment objectives.
Each of the partner stock broking houses constructed a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investment strategies. Each of them then deployed an imaginary fund of N10 million to invest on the 10 stocks in whatever proportions they considered best.
So far the TMP has posted an aggregate gain of 38.1 per cent, indicating that the N50 million imaginary fund deployed in the TMP has appreciated to N69.063. While the aggregate growth stood at 38.1 per cent, Portfolio C, which has maintained the highest growth, soared to 67.9 per cent last week, from 48.3 per cent the previous week. The N10 million deployed by the portfolio has improved to N16.789 million.
Portfolio D that climbed to 48.8 per cent two weeks ago, recorded further jump to hit 58.8 per cent. This implies that N10 million deployed by Portfolio D has appreciated to N15.886 million.
Similarly, Portfolio B rose from 39.7 per cent to 50.2 per cent, showing that its value has grown from N10 million to N15.062 million. In the same vein, Portfolio A has improved to 34.7 per cent, up from 25.3 per cent two weeks ago. The N10 million deployed has improved to N13.472 million.
Portfolio E, which has recorded the least return, stood at 9.7 per cent last week. The N10 million deployed by the portfolio rose to N10.977 million as at last Friday.
A further analysis of the Portfolio C showed that all the stocks have recorded gains except one that declined by 6.2 per cent. The highest gain is 234.9 per cent, trailed by 140.6 per cent. Others are: 67.9 per cent; 65.4 per cent; 60.4 per cent; 52.4 per cent; 42.3 per cent; 27.5 24.8 per cent and 13.8 per cent.