By Dipo Olowookere
The local stock market returned to the positive territory on Wednesday on the back of bargain-hunting in Airtel Africa, Nigerian Exchange (NGX) Group, UAC Nigeria and others.
Business Post observed that investors used the opportunity of the panic selling to mop up shares trading at low prices and this resulted in the exchange growing by 1.24 per cent in the midweek session.
As a result, the All Share Index (ASI) improved by 641.77 points to 52,591.41 points from 51,949.64 points while the market capitalisation increased by N346 billion to N28.353 trillion from N28.007 trillion.
The domestic bourse closed with only 11 price gainers yesterday led by Chams, which gained 9.52 per cent to settle at 23 kobo and was trailed by Airtel Africa, which rose by 9.39 per cent to N1608.00.
FTN Cocoa appreciated by 6.06 per cent to trade at 35 kobo, Veritas Kapital improved its share price by 4.76 per cent to 22 kobo, while Royal Exchange went up by 3.64 per cent to N1.14.
A total of 41 equities depreciated in price on Wednesday, with McNichols and Champion Breweries recording the heaviest fall as they lost 10.00 per cent each to close at N1.98 and N3.42 respectively. PZ Cussons depreciated by 9.92 per cent to N11.35, Regency Assurance fell by 9.68 per cent to 28 kobo, while NEM Insurance declined by 9.25 per cent to N3.63.
As earlier stated, the mood of the market was weak during the midweek session as reflected in the market breadth and the performance of the sectors, which closed in the red zone due to heavy profit-taking.
The insurance sector deflated by 3.70 per cent, the banking index went down by 2.13 per cent, the consumer goods counter decreased by 1.33 per cent, the energy space crashed by 0.76 per cent, and the industrial goods sector declined by 0.40 per cent.
Unlike the previous day, the level of activity was low as the trading volume declined by 46.90 per cent to 382.5 million units from 720.2 million units, the trading value depreciated by 52.25 per cent to N4.2 billion from N8.9 billion, while the number of trades contracted by 2.85 per cent to 5,922 deals from 6,096 deals.
UAC Nigeria attracted the highest trading volume with a turnover of 48.2 million shares worth N618.6 million, UBA sold 31.9 million equities valued at N250.5 million, Access Holdings exchanged 30.7 million stocks for N300.8 million, FBN Holdings traded 30.6 million equities valued at N327.3 million, while Transcorp transacted 27.3 million shares worth N32.4 million.
