THISDAY Model Portfolios Improve to 38% on Renewed Demand

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By Goddy  Egene   

 THISDAY Model Portfolio (TMP) improved to 37.9 per cent last week after taking a plunge the previous week on huge profit taking. The TMP had appreciated to a record high of 44.2 per cent three weeks ago before falling to 36.7 per cent  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 decline in the Nigerian Stock Exchange (NSE) All-Share Index.

The 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 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 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.

A look at the TMP for the week ended Friday, March 23, indicated that it improved to 37.9 per cent, from 36.7 per cent the previous week. This showed that    the value of the N50 million imaginary fund deployed by the five firms has improved to N68.956 million, compared with N68.386 million, the previous week.

 A further breakdown   of the   individual portfolio put Portfolio C ahead with a gain of 61 per cent, up from 58.7 per cent. This means that the N10 million deployed by the portfolio stood at N16.136 million   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.  This implies that the N10 million deployed by the portfolio is now worth N15.455 million. Portfolio B, which   fell to 45.5 per cent the previous week, improved to 46 per cent last week. This shows that the N10 million deployed, has improved to N14.602 million.  Portfolio A stood at 27.9 per cent last week, indicating    This shows the N10 million deployed, remained at  12.791 million.