THISDAY Model Portfolios Decline on Profit Taking

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By Goddy  Egene

THISDAY Model Portfolio (TMP) trended southwards last week as profit taking by investors continued on the Nigerian bourse. The market   recorded the third consecutive decline last week on sustained bear run, shedding 1.3 per cent.

 Although the TMP followed similar trend, it recorded a lower decline of  0.9 per cent to close at 40.5 per cent, compared with 41.4 per cent the previous week.

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.

 Every  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.

Four of the stockbroking firms have been recording growth  in their respective  portfolios, while one has  recorded instability in its performance. Although the four portfolios remained positive in their year-to-date growth,  they closed lower last week.

Portfolio D maintained its lead, closing with a gain of 53.2 per cent. But it is lower than the 53.8 per cent recorded two weeks ago.  This portfolio’s value stood at N15.328 million, compared with its value of   N10 million at the  introduction of the portfolio.

Also, Portfolio C recorded a decline from 48.3 per cent to 46.3 per cent last week. But it retained its second position, closing with N14.634 million value as against N14.831 million the previous week.

Similarly, Portfolio B ended last week occupying the third position with a growth of 38.9 per cent, down from 39.7 per cent in the previous week.  This implies that the N10 million deployed stood at N13.899 million as at last Friday.

 Portfolio A that was 24.5 per cent two weeks ago, declined to 23.5 per cent last week. This indicates that the N10 million deployed is now worth N12.348 million.

Out of the 10 stocks in Portfolio D,  nine remain positive while only one is negative.   The only stock with negative performance has recorded 20.3 per cent decline.  On the positive side, the highest gainer improved from 120.4 per cent to 121.5 per cent.  The second highest gainer also improved from 109.2 per cent to 112.6 per cent. Other gainers included:  75.3 per cent; 50 per cent; 36.5 per cent;  27.7 per cent; 21.2   per cent;  and 11.2 per cent.