CardinalStone research analysts said that equities market momentum has remained positive into year-end, “supported by likely portfolio rebalancing as fund managers reposition ahead of the new year”.
In their recent Model Equity Portfolio (MEP), they noted that “consistent with our strategy from last week, we have further increased our overweight exposure in Dangote Cement and Zenith Bank, while upgrading UBA to an overweight position (previously market weight)”.
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“We continue to monitor the market for attractive entry points in fundamentally strong names to further strengthen our position. We will make incremental adjustments as needed to keep the portfolio optimised through the close of the year,” the analysts said.
“Last week, the exchange maintained its bullish momentum for the second consecutive week, with the benchmark index gaining 1.63 percent week-on-week (WoW) to settle at 149,433.25 points.
“The Model Equity Portfolio (MEP) gained 2.13 percent in comparison, outperforming by 50 basis points (bps). Year-to-date (YtD), the MEP return of 48.87 percent maintains its lead over the All-Share Index (ASI’s) 45.18percent, outperforming by 3.69 percent,” the analysts further stated.
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According to them, the MEP’s outperformance last week was “driven largely by our overweight position in MTNN (+12.98 percent WoW), which contributed 176 bps to overall portfolio performance.
“Additional support came from strong price action in Zenith Bank (+2.89 percent WoW), International Breweries (+5.29 percent WoW), and Guinness (+10 percent WoW), where we also hold overweight positions,” they added.