Dubai: Fifteen of the largest and most liquid of stocks on Abu Dhabi’s ADX will have an index all to themselves – the FTSE ADX 15 or FADX 15. These 15 companies will be selected using a combination of free float adjusted market capitalization and median daily trading value.
The blue-chip index – to be launched Wednesday (March 30) - will “support ADX’s recently launched derivatives market and the creation of ETFs (exchange traded funds) and other investment vehicles”.
This move represents the first in a series of co-branded indices being developed with the FTSE Russell. ADX had launched a strategy last year to bring in more international investors and enhance liquidity. This led to a broadening of asset class offerings, including the introduction of single stock futures in the fourth quarter of last year.
The FADX 15 will be used as the basis for the launch of new index products on ADX this year. Saeed Hamad Al Dhaheri, Managing Director and CEO of Abu Dhabi Securities Exchange, said: “The indices developed in partnership with FTSE Russell will support our aim to create a vibrant and liquid capital market that provides sustainable growth opportunities for investors around the world.”