Key Highlights
- USGRWTH, the Lunate S&P US Shariah Growth ETF, fell 2.0% on the day on 8.4x its 7-day average volume, with AED 459.8k traded and a week net outflow of AED 509k, the largest in the ETF complex.
- USVALUE, the Lunate S&P US Shariah Value ETF, lost 1.5% on the day at 10.5x its 7-day average volume (AED 171.4k notional).
- SUKUK, the Lunate JP Morgan Global Sukuk ETF, traded 81.5x its 7-day average volume while falling 1.1% on the day; BONDAE, the Lunate JP Morgan UAE Bond UCITS ETF, traded 36.4x average, down 0.6%.
- GCCDIV, the Lunate Solactive GCC Shariah Dividend ETF, was the busiest ETF by shares (67,107) and fell 1.4% on the day, extending elevated turnover flagged in Monday's wrap.
- AMR, Americana Restaurants International PLC, was the strongest equity, up 4.6% on the day at 2.0x average volume; EAND, Emirates Telecommunications Group Company (Etisalat Group) PJSC, added 3.9%.
- ADPORTS, Abu Dhabi Ports Company PJSC, led turnover at AED 337.71m, up 2.9% on the day and 19.2% on the week, on 8.3x its 7-day average volume.
- IHC, International Holding Company PJSC, showed the largest weekly net outflow among equities at AED 147.0m, down 0.6% on the day.
Market Overview
Tuesday's session on the Abu Dhabi Securities Exchange split cleanly along the ETF-versus-equity line. The two US-exposure funds, USGRWTH, the Lunate S&P US Shariah Growth ETF, and USVALUE, the Lunate S&P US Shariah Value ETF, fell 2.0% and 1.5% on the day on volumes 8.4x and 10.5x their 7-day averages, Nukoud calculations based on Nukoud Analytics. That selling fits a backdrop in which ETF selectors are openly questioning whether US earnings are in a bubble and central bank economists warn AI valuations look stretched. The fixed-income wrappers were caught too, with SUKUK, the Lunate JP Morgan Global Sukuk ETF, trading 81.5x normal volume as the global bond sell-off deepened.
The equity board told the opposite story. Etisalat Group rose 3.9%, Americana 4.6% and Abu Dhabi Ports 2.9%, the latter on AED 337.71m of turnover. The tension is that even the local-flavoured ETFs did not join the equity rally: GCCDIV, the Lunate Solactive GCC Shariah Dividend ETF, fell 1.4% on the day, and UAEA, the Lunate S&P UAE Shariah ETF, slipped 0.6% despite the strength in several of the exchange's largest names.
ETFs
The clearest signal in the fund complex was the exit from US exposure. USGRWTH fell 2.0% on the day with AED 459.8k traded, the highest ETF notional on the exchange, and carries a week net outflow of AED 509k, the largest of any listed fund. USVALUE fell 1.5% at 10.5x its 7-day average volume. Both moves came as fund selectors debate a possible bubble in US earnings and economists flag AI-driven valuation risk.
Fixed income was the volume story. SUKUK traded 29,250 shares against a 7-day average of 359, 81.5x normal, while falling 1.1% on the day, and BONDAE traded 36.4x its average, down 0.6% with a week net outflow of AED 47k. That activity is consistent with long-term government borrowing costs hitting multi-decade highs and the US 30-year Treasury yield reaching its highest level since 2007.
GCCDIV remained the busiest ETF by shares at 67,107, or 1.8x average, and fell 1.4% on the day and 2.5% on the week, with a AED 122k weekly net outflow. Its heavy turnover extends the pattern Nukoud noted a session earlier, when GCCDIV turnover doubled amid an ETF rotation.
Against the outflows, two funds bucked the trend. TURKI, the Lunate S&P Turkey Shariah ETF, gained 1.0% on the day at 57.5x average volume with a AED 50k weekly net inflow, and QUANTM, the Boreas Solactive Quantum Computing UCITS ETF, holds the largest weekly net inflow at AED 292k despite a 1.2% one-day fall. On the objective bases of return and flow, TURKI and QUANTM were the day's relative winners in the complex; on flow and volume, the US funds were the losers.
Equities
Equity strength was fairly broad but headed by three names. AMR, Americana Restaurants International PLC, rose 4.6% on the day at twice its 7-day average volume. EAND, Emirates Telecommunications Group Company (Etisalat Group) PJSC, gained 3.9% on AED 150.67m of turnover and a AED 44.9m weekly net inflow. ADPORTS, Abu Dhabi Ports Company PJSC, added 2.9% on 8.3x average volume and AED 337.71m of notional, taking its one-week return to 19.2%.
The weak spots were concentrated in the holding companies and banks. IHC, International Holding Company PJSC, fell 0.6% and carries the largest weekly net outflow on the board at AED 147.0m. ADPORTS itself, despite the rally, shows a AED 12.5m weekly net outflow. FAB, First Abu Dhabi Bank, and ADCB, Abu Dhabi Commercial Bank, each slipped 0.5% on the day, with FAB trading only 0.58x its 7-day average volume. E7, E7 Group PJSC, traded 46.7x its average volume yet closed 0.7% lower.
This article was created with AI assistance and reviewed by our Editorial staff before publication. This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Please review the relevant securities website and factsheets before making any investment decision. See our full disclosures.
