6 November 2017

Nigeria: Thisday Model Portfolio Continues With Gaining Streak

THISDAY Model Portfolio (TMP) has continued to record positive performance, justifying the investment and analytical prowess of the various stockbroking houses that constructed the TMP.

By the close of the week ended November 3, 2017, the value of the TMP appreciated to 20.9 per cent, up from 19.5 per cent the previous week.

TMP, an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), was 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.

The project involved asking each of the partner stock broking houses in the country to construct a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investment strategies. They were then asked to each deploy an imaginary fund of N10 million to invest on the 10 stocks in whatever proportions they considered best.

Last Friday marked the 19th week since the introduction of the portfolios and they have generated a total return of N10.468 million. This implies that the N50 million, which was the initial worth of the TMP, has improved to N60.468 million.

Portfolio C remained the highest performer having recorded a growth of 34.4 per cent, up from 31.7 per cent the previous week. The N10 million deployed in the portfolio has appreciated to N13.443 million.

Portfolio D maintained the second position as its gain improved from 29.4 per cent the previous week, to 29.8 last week, showing that theN10 million has grown to N12.986 million. Similarly, Portfolio B that closed at 22.5 per cent two weeks ago, rose further to 25.8 per cent, while Portfolio A surged from 12.8 per cent to 14.6 per cent last week.

Meanwhile, further analysis of Portfolio C showed that except one stock, others have continued to deliver positive returns since the start of the TMP exercise. The only negative return is 5.6 per cent. On the other hand, the highest positive return is 74.2 per cent, trailed by 65.8 per cent. This was followed by 47.2 per cent, 43.2 per cent and 26.4 per cent gains respectively. Others included: 19.7 per cent; 12.4 per cent; 8.5 per cent; and 2.9 per cent.

In Portfolio B, the stocks with negative performance remained two with 11.2 per cent and 5.7 per cent. But the highest price gainers among the stocks in this portfolio improved are 74.2 per cent and 72 per cent. The third stock was 43.1 per cent 36.5 per cent followed by 29.8 per cent. Others are: 26.3 per cent; 19.6 per cent; 8.8 per cent; and 8.1 per cent.

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