The Nigerian Exchange (NGX) began the week in negative territory, with the All-Share Index (ASI) dropping by 0.25% to close at 153,739.11 points, wiping off approximately N244.9 billion in market value.

The decline was attributed to profit-taking across medium- and large-cap stocks, particularly in the banking, oil and gas, and consumer goods sectors.

Market capitalization fell from N97.8 trillion to N97.5 trillion, signaling a mild correction after weeks of strong gains. This comes on the heels of a robust October rally, during which the market gained nearly 8%, its second-best monthly performance of the year after July.

Although some traders initially tied the downturn to geopolitical tension — particularly a viral post by U.S. President Donald Trump, who threatened to “send troops” to Nigeria over alleged religious killings — analysts quickly dismissed this as a major factor behind Monday’s decline.

The Nigerian stock market has historically shown a high degree of non-reaction to global political headlines, especially those perceived as external or short-term. Despite media reports claiming that “Naira assets tumbled” in response to Trump’s remarks, data did not support any unusual market movement.

The modest pullback is believed to be purely a case of investors taking profits after a strong month, as analysts note that there’s no evidence of panic or foreign flight.

Indeed, trading data published by NairaMetrics reflected stability rather than turmoil. While the ASI slipped slightly, trading volume rose by 18%, reaching 627 million units valued at N25.1 billion, suggesting continued market participation. UBA Plc dominated both volume and value charts, exchanging 136 million shares worth N5.53 billion, reinforcing investor confidence in the banking sector.

Market breadth remained negative, with 24 gainers and 39 losers, led by Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) on the laggard side. On the flip side, Union Dicon Salt Plc (+9.93%) and Omatek Ventures Plc (+9.92%) topped the gainers’ list.

Despite the brief downturn, the broader sentiment on the NGX remains positive. Some analysts noted that the market’s resilience in the face of global headlines highlights its increasing maturity and internal drivers — including strong corporate earnings, stabilizing foreign exchange rates, and improved liquidity.

Meanwhile, in the currency market, the naira weakened slightly to N1,438/$1 at the official window from N1,422.2/$1 recorded last Friday. Still, the local currency remains on one of its strongest runs in over 18 months, maintaining momentum after its stellar performance in October.

Financial analysts emphasized that the NGX’s “habit of non-reaction” has become a defining feature of the Nigerian equities landscape. Despite global political noise — from U.S. election rhetoric to regional security developments — the market tends to move more in response to local economic fundamentals such as interest rate decisions, inflation data, and company earnings.

It is believed that the Nigerian market has matured beyond knee-jerk reactions, and it’s becoming increasingly earnings-driven, and that’s a positive sign for investors seeking long-term value rather than short-term speculation.

With year-end positioning already underway, most experts expect the market to resume its upward trend, supported by stable corporate performance and continued investor optimism. Monday’s decline, they say, was nothing more than a healthy breather after a sustained rally — not a reaction to political posturing from abroad.

Microsoft has announced plans to invest more than $15 billion in the United Arab Emirates by 2029, marking one of the biggest foreign technology commitments in the Gulf nation’s growing push to become a global artificial intelligence hub.

The investment, confirmed by Microsoft Vice Chair and President Brad Smith, includes a sweeping expansion of the company’s AI and cloud infrastructure across the UAE. The move comes alongside fresh approval from the Trump administration for the export of advanced Nvidia graphics processing units (GPUs) — chips critical for training large AI models — to support Microsoft’s data center operations in the region.

“The biggest share of the investment, by far, both looking back and looking forward, is the expansion of AI data centers across the UAE,” Reuters quoted Smith as saying on the sidelines of the ADIPEC energy conference in Abu Dhabi. “From our perspective, it’s an investment that is critical to meet the demand here for the use of AI.”

The UAE, a nation already synonymous with rapid technological transformation, has been spending heavily to attract global AI companies and researchers. It has also strengthened ties with Washington to secure access to high-performance computing technologies that are otherwise restricted under U.S. export controls, especially to countries with close relations to China.

According to Smith, the Trump White House recently approved the export of an amount equivalent to 60,400 Nvidia A100 GPUs, involving the company’s newest GB300 AI accelerators, after revising technology safeguards to prevent unauthorized transfer to third parties. These approvals follow earlier export licenses under the Biden administration, which allowed Microsoft to deploy roughly 21,500 Nvidia A100, H100, and H200 chips in the UAE.

While the latest chips have not yet been shipped, Smith said deliveries would begin “in a matter of months,” emphasizing that they will be used exclusively within Microsoft’s own data centers to support AI model training and cloud computing operations.

Partnership with G42 and U.S. Oversight

Microsoft’s deepening relationship with G42, Abu Dhabi’s flagship artificial intelligence firm, remains central to its regional ambitions. The tech giant took a $1.5 billion minority stake in G42 last year, gaining a board seat now held by Smith.

However, G42’s historic ties to China have attracted scrutiny in Washington, amid growing U.S. concerns that advanced American chips could indirectly reach Beijing through third-party nations. Smith sought to allay such fears, noting that G42 has made “enormous progress” in aligning with U.S. compliance requirements. I think direct access to the most advanced U.S. chips will be part of G42’s future, he said.

G42 has repeatedly stated that it is working closely with U.S. partners and the Emirati government to ensure full compliance with American export laws and standards on AI development and deployment.

According to Smith’s blog post on Monday, Microsoft will have invested $7.3 billion in the UAE between 2023 and the end of this year, while another $7.9 billion is slated for spending from 2025 to 2029. The funds will primarily go toward expanding Microsoft’s cloud and AI infrastructure to meet surging demand from businesses, government agencies, and startups adopting generative AI tools.

Notably, none of the $15.2 billion investment disclosed on Monday will fund Stargate UAE, the first phase of what is planned to become one of the world’s largest AI data center hubs. That massive project, located in Abu Dhabi, was unveiled during President Donald Trump’s visit to the Gulf in May, and will serve as a separate multibillion-dollar initiative jointly backed by the U.S. and the UAE.

A New AI Frontier in the Gulf

It is believed that Microsoft’s UAE investment underscores how the AI arms race is reshaping global technology alliances. As nations compete for computing power, data, and skilled talent, Gulf countries like the UAE — with abundant capital, pro-innovation regulations, and strategic geopolitical positioning — are emerging as pivotal players.

The deal for Washington is believed to represent a balancing act of supporting American tech dominance in friendly regions while keeping critical chip technology out of China’s reach. It also helps Microsoft to cement a key foothold in the Middle East’s rapidly expanding AI economy, ensuring it remains a dominant force as global demand for generative AI and cloud computing continues to surge.