Dubai: Nasdaq Dubai said on Sunday it has launched futures contracts of the Dubai Financial Market general index (DFMGI) and the ADX index, a move that is expected to attract more liquidity in the market after the successful launch of single stock futures in September 2016.
The DFM General Index (DFMGI) increased from its base value of 1,000 points in 2003 to a high of 8,485 in November 2005 and currently stands at 3,330.
By trading futures contracts on the, investors can for the first time gain exposure to a basket of 37 of some of the Middle East’s most prominent companies listed on DFM including; Emaar Properties, Dubai Islamic Bank and Dubai Investments, without trading either their shares or single stock futures.
“Index futures further strengthen Dubai’s position as an international capital markets hub offering a wide range of opportunities and are likely in particular to attract more foreign investments from large funds seeking hedging and investment solutions,” said Essa Kazim, Chairman of DFM in a statement.
The ADX index has risen 70 per cent in the last five years, tracking the performance of all its companies in sectors including telecommunication, financial services, real estate and energy. The index provides a benchmark of the overall performance of the ADX market which is the second largest in the GCC by market capitalisation and includes First Abu Dhabi Bank, Eshraq Properties and Etisalat among its listed companies.
