THISDAY Model Portfolios Show Resilience, Rise to 40.9 %

The THISDAY Model Portfolio (TMP) showed some level of resilience last week, appreciating to close higher at 40.9 per cent despite a decline outperform the decline of 1.13 per cent recorded by the Nigerian Stock Exchange (NSE) All-Share Index(ASI). The NSE benchmark index fell for the second consecutive week, closing lower at 42,638.83.

However, amidst that fall, the TMP closed higher at 40.9 per cent, up from 39.8 per cent previous week, showing the resilience of the stocks that made up the various portfolios. 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 .

TMP consists of five different portfolio types constructed individually in conjunction with five leading stockbroking firms in the country with different investment objectives.

Every 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. However, an assessment of the TMP performance as at last Friday showed that it has recorded a total growth of 40.9 per cent, showing that N50 million imaginary fund deployed by the five firms has gained N20.453 million. Also, further analysis of the individual portfolios showed that four of the them improved last week, while one declined.

Although Portfolio

declined from 68.9 per cent to 65.2 per cent, it remained the highest gainer, it remained the highest gainer. The N10 million deployed by the portfolio stood at N16.522 million as at last Friday. Portfolio D rose from 57.1 per cent to 58.6 per cent, indicating that its value has grown from N10 million to N15.861million.

Portfolio B remained the third highest gainer with 48.4 per cent, showing an increase from 48.1 per cent. This implies that the N10 million deployed stood at N14.846 million. Portfolio A stagnated at 32.5 per cent, meaning that the N10 million deployed by Portfolio A has improved to N13.256 million. Although Port- folio E remained in the negative territory, it improved from a decline of 3.8 per cent to 0.34 per cent. Meanwhile, all stocks in Portfolio B closed positively. The highest is 147.7 per cent, followed by 125 per cent. Others are: 56 per cent; 55. 5 per cent; 41.2 per cent; 39.7 per cent; 35 per cent; 14.2 per cent; and 2.5 per cent.