By Goddy Egene
Strong growths recorded by Portfolios D and B contributed significantly to the THISDAY Model Portfolio’s (TMP’s) rise to new high of 42.88 per cent last week.
While the equities market recorded an aggregate growth of 0.72 per cent as measured by the Nigerian Stock Exchange (NSE) All-Share Index (ASI) last week, TMP improved from 41.8 per cent to a new high of 42.88 per cent. However, the performance was enhanced by improvement posted by two of the five portfolios in the TMP. In all, three of the five portfolios that made up the TMP witnessed growths while two recorded marginal fall.
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 .
It comprises 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.
By the close of trading last Friday, the TMP has appreciated by 42.88 per cent, showing that the value of the N50 million imaginary fund deployed by the five firms has appreciated to N71.443million.
A further analysis of the performance showed that Portfolio D rose from 58.57 per cent to 63.5 per cent. This implies that the N10 million deployed by the portfolio has increased from N15.861 million the previous week to N16.359 million last week. With this growth, Portfolio D is very close to Portfolio C, which has been dominating as the highest price gainer. Portfolio C ended last week at 64.1 per cent, which is a fall from 65.8 per cent of the previous week. The N10 million deployed by the portfolio stood at N16.412 million.
Also, Portfolio B recorded significant growth last week, moving from 49.8 per cent to 51.8 per cent, meaning that the N10 million deployed has grown to N15.182 million. Similarly, Portfolio A rose from 33.4 per cent to 33.6 per cent, meaning that the N10 million deployed has improved to N13.364 million. However, Portfolio E fell from 1.3 per cent to 1.24 per cent.
Meanwhile, all stocks in Portfolio B closed positive last week. The highest gain is 155.9 trailed by 142.1 per cent. Others are: 55.5 per cent; 53.8 per cent; 46.6 per cent; 44 per cent; 40.8 per cent; 24.4 per cent; 17.3 per cent and 0.6 per cent.