By Goddy Egene
In line with the rally at the stock market, the THISDAY Model Portfolio (TMP) rose further last week to hit a record 43.9%, up from 38.1 per cent the previous week.
The TMP has maintained a steady rise following the bullish trading that has seen prices of equities hit record levels. The benchmark index of the Nigerian Stock Exchange (NSE) appreciated by 5.1 per cent last week to bring the year-to-date growth to 17.9 per cent and a nine-year high.
Similarly, the TMP has continued to appreciate as the stocks in the portfolios enjoy high demand. 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.
By the close of last week, the TMP has recorded an aggregate gain of 43.9 per cent, indicating that the N50 million imaginary fund deployed in the TMP has appreciated to N71.996 million.
An analysis of the individual portfolios showed that Portfolio C, which soared to 67.9 per cent the previous week, inched up further to close at 69.1 per cent. Specifically, the N10 million deployed by the portfolio has improved to N16.910 million.
However, Portfolio D that rose 58.8 per cent two weeks ago, fell to 57.48 per cent last week, indicating that N10 million deployed by Portfolio D stood at N15.748 million.
Portfolio B rose from 50.6 per cent to 51.4 per cent, showing that its value has grown from N10 million to N15.143 million. Similarly, Portfolio A rose further from 34.7 per cent, to 38 per cent. The N10 million deployed has improved to N13.801 million.
Portfolio E closed last week with a growth of 3.9 per cent, down from 9.7 per cent two weeks ago. The N10 million deployed by the portfolio now stands at N10.394.
Meanwhile, a further analysis of Portfolio C showed that all the stocks remained positive have except one with a negative return of 11.7 per cent. The highest gain is 201.2 per cent, trailed by 126.2 per cent. Others are: 77 per cent; 66.5 per cent; 60.9 per cent; 58.9 per cent; 35.1 per cent; 27.5 27.5 per cent and 4.0 per cent.