By GoddyÂ Â Egene Â Â
Â THISDAY Model Portfolio (TMP) improved to 37.9 per cent last week after taking a plunge the previous week on huge profit taking. The TMPÂ had appreciated to a record highÂ of 44.2 per cent three weeks ago before falling to 36.7 per centÂ Â previous week. This had happened as price fell on sell pressure from investors despite impressive results being declared by some companies.
However, the trend changed last week on renewed demand by investors who began to react positively to the results being released by companies. Consequently, the TMP closed higher at 37.9 per cent, compared with a declineÂ in the Nigerian Stock Exchange (NSE) All-Share Index.
TheÂ 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.Â Â Â The investment houses involved in the project are Afrinvest Limited, FSDH Securities Limited, Capital Assets Limited, Meristem Limited andÂ Lead Advisory Limited.
It is made up 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 housesÂ Â constructedÂ Â Â a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investmentÂ strategies. Each of themÂ thenÂ deployedÂ an imaginary fund of N10 million to invest on the 10 stocks in whatever proportions they considered best.
A look at the TMP for the week endedÂ Friday, March 23, indicatedÂ that it improved toÂ 37.9 per cent, fromÂ 36.7 per cent the previous week. This showed thatÂ Â Â Â the value of the N50 million imaginary fund deployed by the five firms has improved to N68.956 million, comparedÂ withÂ N68.386 million,Â the previous week.
Â A further breakdownÂ Â Â of theÂ Â Â individual portfolio put Portfolio CÂ ahead with a gain of 61 per cent, up fromÂ 58.7 per cent. This means that the N10 million deployed by the portfolio stood at N16.136 millionÂ Â Â as at last week.
Similarly, Portfolio D maintained its second position, having gained 54 per cent, up from 51.7 per cent the previous week.Â Â This implies that the N10 million deployed by the portfolio is now worth N15.455 million. Portfolio B, whichÂ Â Â fell to 45.5 per cent the previous week,Â improved to 46 per cent last week. This shows that the N10 million deployed, has improved to N14.602 million.Â Â Portfolio A stood atÂ 27.9 per cent last week, indicatingÂ Â Â Â This showsÂ theÂ N10 million deployed, remained atÂ Â 12.791 million.