Abu Dhabi Stock Exchange and FTSE Russell Announce Growth Market Index

This Abu Dhabi Stock Exchangearab world Second largest exchange FTSE Russell has developed a new benchmark to track the performance of the ADX growth market segment by market capitalization.

The FTSE ADX Growth Markets Index (FADGMI), which went live on Thursday, includes eligible constituents of the recently renamed Growth Markets.

ADX said on Thursday that this would allow investors to “mock” the performance of the platform, which consists of a range of emerging and fast-growing companies.

The launch of FADGMI is part of ADX’s partnership with FTSE Russell. The new index comes on the heels of the FTSE ADX 15 (FADX15), a blue-chip benchmark for the 15 largest and most liquid stocks on the exchange, announced in March.

ADX said it expects to launch more co-branded indices under the partnership in the coming months.

ADX Growth Market is an emerging equity segment of the Abu Dhabi Exchange that connects investors and private companies in sectors such as sports, transportation, wholesale trade and healthcare.

“The launch of FADGMI demonstrates our commitment to providing market participants with new benchmarks that meet world-class standards, especially on the exchange’s fast-growing international investor base,” said Saeed Al Dhaheri, Managing Director and CEO of ADX.

The new index will allow investors to track opportunities and make “insightful investment decisions to better manage their portfolios,” he said.

The collaboration between ADX and FTSE Russell, a global benchmark, analytics and data solutions provider wholly-owned by the London Stock Exchange, is part of ADX’s push to expand its product range, which includes derivatives markets and in the fourth quarter of 2021 and this year FADX15 index futures launched in June.

The partnership between ADX and FTSE Russell is also an important part of the strategy to “increase liquidity and support the growth of the exchange’s market capitalization,” said Mr. Al Dhaheri.

The Abu Dhabi Exchange is the first exchange in the region to use FTSE Russell as its index manager and is part of a strategy launched last year to attract more foreign investors.

In January, the FTSE ADX Composite replaced the ADX Composite, and the FTSE ADX Sectors replaced the then-existing sectoral indices.

Updated: September 1, 2022 at 10:35 am