Thursday, February 11, 2021   /04:50 AM / By Proshare Research/ Header Image Credit: EcoGraphics

Proshare Review of 'Toni Index' and 'Gote Index'

Tony and Dangote indices have stocks with large Market CAPs which can suggest the overall sentiment of the market.

Tony's index consists of AFRIPRUD, TRANSCORP, UBA, and UBCAP while Dangote's index consists of DANGCEM, DANGSUGAR, and NASCON.

The headwinds arising from the twin shocks of the COVID-19 pandemic and drop in oil prices have continued to weigh heavily on the fortunes of the companies within both indices.

Although these companies have shown resilience in the face of the challenges with rebounds in their revenue figures in Q3 2020.

Dangote Index

The stocks herein are within the manufacturing sector; the sector recorded a contraction in GDP figure of -1.51% in Q3 2020 from -8.78% in Q2 2020 and +0.43% growth recorded in Q1 2020 respectively.

The index opened the year on a positive note with a growth of +24.98% in January 2020 following major declines in February, March, and June with -5.94%, -23.92%, and -8.50% respectively.

The month of March particularly recorded the highest decline during the year. This decline was a result of macroeconomic challenges resulting from the pandemic leading to dampened investor confidence in the stocks within the index, supply chain disruptions, lockdown, and restrictions which affected household incomes negatively leading to a reduction in demand for goods and services.

Following the gradual reopening of the economy, the Dangote index closed the year positive with +17.39% as of 22 December 2020.

Furthermore, Dangote Cement Plc is a large-cap stock within the index that served as the major factor contributing to the growth or decline of the Dangote Index.

Dangote Cement delivered very strong Q3 2020 results with a +37.58% increase in PBT from N197.68bn it posted in Q3 2019 to N271.96bn in Q3 2020. The recovery in demand from a subdued Q2 was driven by the re-starting of construction projects post the COVID-related lockdown and resumption of clinker exports to neighboring countries. (see chart 1)

Chart 1: Dangote Index Yields Jan. 2020 - Dec. 2020

Source: NSE, Proshare Research

Source: NSE, Proshare Research 

Tony Index

The chart below reveals that the Tony index had reported bearish and bullish stock prices at different months in the year 2020. The Index recorded its lowest points in March, February, and June 2020 with -23.44%, -12.44, and -5.20% respectively.

Investors' activity on the Index is high as it is mostly composed of stocks in the financial services sector (UBA, AFRIPRUD, UBCAP), the sector is also the most active on the NSE.

The months with the highest yields were October, April, and November with +21.69%, +14.73%, and +9.52% respectively. (see chart 2)

Chart 3: Toni Index Yields Jan. 2020 - Dec. 2020

Source: NSE, Proshare Research

Source: NSE, Proshare Research

Do feel free to share your opinions/observations and feedback with us vide [email protected] and/or [email protected] 

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Downloadable PDF - The 2020 Nigerian Capital Market Report

1.       Complete Report: The Nigerian Capital Market Report 2020: Leveraging a Crisis - Jan 28, 2021

2.       Executive Summary: The Nigerian Capital Market Report 2020: Leveraging a Crisis - Jan 28, 2021

Related Links

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2.      NCM 2020:Regulatory Governance in 2020

3.      NCM2020: Energy Commodities Took a Big Hit in 2020

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Monthly NCM

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6.     The June 2020 Nigerian Capital Market Service Report - Proshare

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8.     The April 2020 Nigerian Capital Market Service Report - Proshare

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10.  The February 2020 Nigerian Capital Market Service Report - Proshare

11.   The January 2020 Nigerian Capital Market Service Report - Proshare

12.  The November 2019 Nigerian Capital Market Service Report - Proshare

13.  The October 2019 Nigerian Capital Market Service Report - Proshare

14.  The September 2019 Nigerian Capital Market Service Report - Proshare

15.  The August 2019 Nigerian Capital Market Service Report - Proshare

16.  The July 2019 Nigerian Capital Market Service Report - Proshare

17.  The June 2019 Nigerian Capital Market Service Report - Proshare

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