THISDAY Model Portfolio Hits New High as Investors Renew Demand


Goddy Egene
The THISDAY Model Portfolio (TMP) reversed the decline recorded the previous week to hit a new high last week. The TMP had in the previous week closed with a decline, falling from 20.7 per cent to 17.5 per cent. But the story was different last week as aggregate value surged to 22.4 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 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 22nd since the introduction of the portfolios and they have generated a total return of N11.224 million. Last week was unique as all of the portfolios have returned to positive territory. Portfolio E that had recorded a negative return of 1.8 per cent as at two weeks ago, closed last week with a growth of 1.46 per cent.

Portfolio C that had recorded the highest growth but declined to 30.2 per cent the previous week, recovered back to 35.6 per cent last week. From a value of N10 million, Portfolio C has appreciated to N13.558 million as at last week.
Portfolio D similarly, rose to 31.6 per cent from 24.5 per cent to maintain its second position as the highest gainer. This shows that the portfolio value has grown from N10 million to N13.160 million.

Also, Portfolio B Jumped from 23.0 per cent the previous week to 27.9 per cent last week to retain the third position. Portfolio A, which fell to 12 per cent the previous week, appreciated to 15 per cent last week.
However, a further analysis of all stocks in the Portfolio C showed that they maintained positive performance except one that declined and another that stagnated.

The highest positive return has improved to 95 per cent, trailed by 85.7 per cent. This was followed by 50.2 per cent, 44.8 per cent, 22.0 per cent, 21.8 per cent, 18.8 per ent ad 10.9 per cent in that order.
In the same vein, under Portfolio D, the stocks with negative performance remained two( 13.5 per cent and 2.84 per cent).But the highest price is 95 per cent, trailed by 62.3 per cent. Others included: 44.8 per cent; 31.6 per cent; 21.9per cent; 21.8 per cent; 14.6 per cent; 14.6 per cent and 4.7 per cent.