THISDAY Model Portfolios’ Growth Remains High at 39.8%

In line with the persistent profit taking at the stock market that saw the Nigerian Stock Exchange (NSE) AllShare Index (ASI) decline by 3.39 per cent, the THISDAY Model Portfolio (TMP) fell to 39.8 per cent last week from 41 per cent the previous week.

After hitting a record growth of over 17 per cent, profit taking set in, which has reduced the growth yearto-date growth to 13 per cent last week. Apparently moving in the same trend, the TMP, which had climbed to 43.9 per cent three weeks ago, has moderated to 39.8 per cent as at the close of trading last Friday.

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.

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.

An assessment of the TMP performance as at last Friday

showed that it has recorded an aggregate growth of 39.8 per cent, indicating that the N50 million imaginary fund deployed by the five firms has gained N19.902 million. A further analysis of the individual portfolios showed that four of them declined last week, while one appreciated. Only Portfolio A appreciated, moving from 21.7 per cent the previous week to 32 per cent last week. This means the N10 million deployed by Portfolio A has improved to N13.216 million. Although Portfolio C fell from 68.9 per cent to 65.5 last week, it remained the highest gainer. The N10 million deployed by the portfolio stood at N16.552 million as at last Friday.

Portfolio D fell from 60.7 per cent to 57.1, indicating that its value has grown from N10 million to N15.712 million. Similarly, Portfolio B declined from 52.6 per cent to 48.1 per cent last week.This implies that the N10 million deployed stood at N14.807 million.

Portfolio E slipped back to negative territory last week, recording a decline of 3.8 per cent. The N10 million deployed by the portfolio stood at N9.613 million as at last Friday.

Meanwhile, only one stock in Portfolio C is negative, the remaining are positive. The highest is 220.9 per cent, followed by 146 per cent. Others are:61.9 per cent; 50.9 per cent; 50.7 per cent; 39.4 per cent; 34.1 per cent; 32 per cent; and 4.8 per cent.