THISDAY Model Portfolios Record Further Growth to 41.8 % 


By Goddy  Egene  

 THISDAY Model Portfolio (TMP) rose further last week to hit 41.8 per cent, up from 40.9 per cent the previous week. Again, the growth, market analysts said, reflected the resilience of the stocks in the portfolios which were selected based on the expertise of the broking firms involved.

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 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.

An assessment of the TMP performance as at the close of trading   last Friday, it recorded further growth as against a decline posted by the Nigerian Stock Exchange (NSE) All-Share Index. While the NSE ASI fell by 0.16 per cent, the TMP rose from 40.9 per cent to 41.8 per cent.

With the growth posted by the TMP, the   N50 million imaginary fund deployed by the five firms has appreciated to N20.882 million.  A further analysis of the individual portfolios showed that four of   them recorded improvement, while one stagnated.

However, Portfolio C maintained its leading position, rising from 65.2 per cent to 65.8 per cent.  The N10 million deployed by the portfolio increased to N16.578 million as at last Friday. Portfolio D   also maintained its second position despite stagnating at  58.6 per cent,  indicating that  its value has grown from N10 million to N15.861million.

Similarly, Portfolio B remained the third highest gainer, jumping from 48.4 per cent, to 49.8 per cent. This implies that the N10 million deployed has grown to at N14.978 million.  Portfolio A rose from 32.5 per cent to 33.4 per cent, meaning that the N10 million deployed has improved to N13.338  million.

 Portfolio E   moved into the positive territory,   recovery from a decline of 0.34 per cent to a growth of 1.3 per cent.

Meanwhile, all stocks in Portfolio C except one closed positively as at last week.  The highest gain is 233 per cent, followed by 145 per cent. Others are: 55.5   per cent;   54. 4 per cent; 52.9 per cent; 41.1 per cent; 32.9  per cent; 28.7 per cent; and 2.6 per cent.