The Nigerian equity market has experienced a loss of N674 billion in the first week of the second quarter, indicating mixed sentiment throughout the quarter. Despite closing the first quarter in the green with the NGX All-Share Index at 54,232.34 index points, political uncertainties and economic headwinds such as rising inflation, interest rate hikes, and the disputed 2023 general election are expected to dampen market confidence. Some investors had hoped for impressive full-year 2022 corporate earnings results, but the equity market witnessed selling pressure. Market experts predict that the market will continue to experience mixed sentiment in the second quarter of 2023, with occasional reactions to possible appointments and expected governance structures from the office of the president-elect. While some predict a negative performance in Q2, others expect positive momentum due to microeconomic changes expected from the incoming government. The market has an automatic adjustment mechanism, and some analysts are optimistic that the current sell-off will be reversed, leading to intense activity in the market going forward.
