THISDAY Model Portfolio’s Gains Hit 19.5% on Renewed Demand

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By Goddy Egene  

The cumulative gains recorded by THISDAY Model Portfolio (TMP) hit 19.5 per cent last week as all the five separate portfolios posted positive performance. After rising to 17.2 per cent in the 16th week of its introduction, the TMP growth fell back to 16.7 per cent the previous week.

However, it appreciated to 19.5 per cent last week, indicating a growth of 2.8 per cent and outperformed the Nigerian Stock Exchange (NSE) All-Share Index index that depreciated by 0.48 per cent.

TMP, an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), is 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.

The project involved asking each of the partner stock broking houses in the country to construct a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investment strategies. They were then asked to each deploy  an imaginary fund of N10 million to invest on the ten stocks in whatever proportions they considered best.

By the close of  last Friday, which marked the 18th week of its introduction,  the TMP has generated  a total return of N9.751 million  on  a combined hypothetical portfolio value of N50 million.

 All the portfolios performed positively last week.  Portfolio E that had slipped into the negative territory the previous week, recovered last week from negative 0.4 per cent to positive 1.08 per cent.

Also, Portfolio A that fell to 12.5 per cent two weeks ago, climbed to 12.8 per cent last week.  In the same vein,   Portfolio B that recorded a marginal decline to 19.8 per cent previous week, jumped to 22.5 per cent last week.

But Portfolio C retained the number one spot with the highest gain of 31.7 per cent as at the week ended October 27, up from 28.9 per cent the previous week. This means that N10 million deplored has appreciated to N13.168 million.

Portfolio D improved from 22.8 per cent the previous week,  to 29.4 per cent last week, indicating that theN10 million has grown to N12.945 million.

 A further analysis of Portfolio C showed that except one stock, others have delivered positive returns since the start of the TMP exercise. The only negative return is five per cent. On the other hand, the highest positive return is 71.9 per cent, trailed by 71.4 per cent. This was followed by 65.8 per cent, 47.3 per cent and 36 per cent gains respectively. Others included:  per cent; 25 per cent; 22 per cent; 8.4 per cent; and 4.0 per cent.

In Portfolio B, the stocks with negative performance remained two with 12.5 per cent and 2.1 per cent. However, the highest price gainers among the stocks in this portfolio improved are 71.9 per cent and 71.4 per cent. The third stock was 36.5 per cent, followed by 25.3 per cent. Others are: 21.9 per cent; 14.6 per cent; 8.4 per cent; and 5.6 per cent.