By GoddyÂ Â Egene
THISDAY Model Portfolio (TMP) followed the bearish trend at the stock market to close lower last week at 30.7 per cent. However, Portfolio D has displaced Portfolio C to become the highest advancer.
Shortly after the introduction of TMP last year, Portfolio C has been dominating, recording the highest growth. But that is no longer the case as Portfolio DÂ closed last week with the highest growth.
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.
Â 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 Â an imaginary fund of N10 million to invest on the Â 10 stocks in whatever proportions they considered best.
Four of theÂ stockbroking firms have been recording growthÂ Â in their respectiveÂ Â portfolios, while one hasÂ recorded instability in its performance. As at the close of trading last week,Â Â theÂ Â four portfolios remained positive. An analysis of the individual performance showed that Portfolio D has so farÂ recorded a growth of 53.8 per cent. This implies that theÂ Â N10 million deployed by the portfolio has improved to N15.381 million.
Portfolio C followed with 48.3 per cent. With this performance, the N10 million deployedÂ Â has increased to N14.831 million. In the same vein, Portfolio B ended last week, showingÂ Â a growthÂ Â 39.7 per cent, meaning that its N10 million is now valued at N13.973 million. Portfolio Aâ€™s growth stood at 24.5 per cent, indicating that the N10 million deployed has improved to N12.452 million. In all,Â TMP has appreciated to N52.289 or 30.7 per cent, compared with the initial N40 million.
Meanwhile, a further analysis of the Portfolio D, which is the highest gainer, showed thatÂ Â nine of the 10 stocksÂ areÂ Â witnessing positive performance. One of stock is negative with a decline of 16.6 per cent. The highest gain is 120.4 per cent, followed by 109.2 per cent.Â Â Â Others are:Â Â 75.3 per cent; 49 per cent; 40.9 per cent;Â Â 28.1 per cent; 20.5Â Â per cent;Â Â and 11.2 per cent.