After more than 6 months of design and evaluation, we are happy to inform the general public that Tekedia Intelligence will debut Tekedia Broad Industrial Average (TBIA) on Monday. We do hope that this index will become a barometer to access the performance of the Nigerian Stock Exchange.
We are following the footsteps of Wall Street Journal that developed the US’s Dow Jones Industrial Average and the Financial Times that got the UK’s FTSE 100.
TBIA, we hope, will make it to the lexicon of financial reporters in Nigeria. We have watched the overall all-index and noted that our selected companies follow accurately more than 99.8% of the time.
Tekedia developed this index. Our major criterion for inclusion in TBIA was not just the share price. In short we excluded some companies like Guinness Plc, Total Plc and others whose disproportionate high share price will distort the true picture of the market. Nigerian stock exchange is depressed right now. And the few trading at hundreds cannot give an accurate position of the market. We will write more on this index in coming days as we explain the foundations and basis for everything done in the math.
We also came up with what we call TBIA divisor which is a magic number that is used to divide the sum total of all the prices in the index. We tuned that number for six months and came up with a sweet one. There is also a mathematical model that captures share splitting and combinations making sure that no matter what happens, the numbers before and after the procedure are the same in TBIA.
Tekedia will publish a white paper this week on TBIA so that anyone can track what we have done. TBIA will be hosted in a separate page on Tekedia. We will scale it to 5,000 on the first day, Monday. This is from a previous announcement for an earlier planned July 1 debut.
Tekedia Broad Industrial Average (TBIA)– we have created a stock market index that mirrors the Dow Jones Industrial Average to give a daily assessment of Nigerian stock exchange. This composite includes 20 stocks across different sectors of the stock exchange and we have weighted them by stock price. Automation of the process so that it will show as map is being done. Starting number for the TBIA is 5,000. As the average does well, it will move up, and when it lags, it goes down.