THISDAY Model Portfolio Records Marginal Decline on Profit Taking

Goddy Egene
After weeks of gains, THISDAY Model Portfolio (TMP) recorded a marginal decline last week as investors took profit in some of the stocks that are in the portfolios.
The TMP aggregate gain stood at 20.7 per cent as at the close of trading the week ended November 10, 2017, down marginally from 20.9 per cent the previous week.

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 was executed by 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 10 stocks in whatever proportions they considered best.

Last Friday marked the 20th week since the introduction of the portfolios and they have generated a total return of N10.384 million, compared with the N10.468 million the previous week.
An analysis of the performance of the individual showed that Portfolio C remained the highest performer with a gain of 34.5 per cent so far. The portfolio appreciated from 34.4 per cent that was the value the previous week, implying that the N10 million deployed in the portfolio has appreciated to N13.445 million as at the close of trading last Friday.

Portfolio D remained the second highest gainer with 28.7 per cent. However, the gain is lower than the value of 29.9 per cent the portfolio recorded as the previous week. This indicates that the portfolio fell last week, with the N10 million, which had appreciated to N12.986 million, fell back to N12.865 million.

Similarly, Portfolio B maintained the third position with 25.2 per cent, which however, was lower than the 25.8 per cent the previous week. Portfolio A, which surged from 12.8 per cent to 14.6 per cent the previous week, rose further to 14.9 per cent last week.

Meanwhile, all stocks in the Portfolio C maintained positive performance except one that has declined by 10.6 per cent. The highest positive return is 90.1 per cent, trailed by 72.5 per cent. This was followed by 50.2 per cent, 43.2 per cent, 24.9per cent, 21.9per cent, 13.4per cent and 8.5per cent respectively.

In the same vein, under Portfolio B, the stocks with negative performance remained two (13.5per cent and 2.84per cent).11.2 per cent. However, the highest price is 72.5 per cent, trailed by 64.1 per cent. Others included: 43.2 per cent; 24.8 per cent; 21.8 per cent; 13.4 per cent; 11.7 per cent and 6.2 per cent.