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06 February 2020
BUSINESS

FTSE Russell to create new ADX benchmark indexes

The indexes will transition to FTSE Russell’s index methodology, with index names to be co-branded

FTSE Russell classifies UAE as a secondary emerging market within its Global Equity Index Series/Bloomberg

by Kudakwashe Muzoriwa

Abu Dhabi Securities Exchange (ADX) has appointed FTSE Russell, a global index and analytics provider, as its benchmark administrator for its domestic equity indexes as it seeks to lure more foreign investors.

The new ADX indexes to be created by FTSE Russell aim to increase the quality and depth of sustainable investments in the UAE while enhancing the performance of financial markets.

FTSE Russell will begin providing daily index calculations on the General Index which includes all companies listed on the stock exchange and nine sector-specific indexes (banks, energy, financial services, insurance, and real estate).

HE Khalifa Salem Al Mansouri Chief Executive of ADX, said, “The new indexes will enhance our market attractiveness to foreign investors and improve the global competitiveness of our trading environment.”

ADX stated that a new series of sustainable finance indexes and Shari’ah compliant indexes are also planned. ADX’s indexes cover over 66 listed companies listed with a total market capitalisation of approximately $145 billion by the end of 2019.

FTSE Russell classifies UAE as a secondary emerging market within its Global Equity Index Series (GEIS). UAE listed companies currently account for 0.93 per cent of the FTSE Emerging Index, a widely used global benchmark.

 “We are delighted to collaborate with ADX and bring our expertise as a leading global index provider to what is a vibrant and growing capital markets ecosystem in the UAE,” said Waqas Samad, the Group Director, Information Services, LSEG and CEO FTSE Russell.

Additionally, by providing enhanced ADX offering, the new indices will widen investor audiences and institutions to the ADX index family.

Indexes are used by financial institutions and asset owners for a variety of purposes including to benchmark performance, inform product development, conduct market research and analysis and to underpin exchange-traded funds (ETFs).

 


RELATED STORIES: FTSE Russell Abu Dhabi Securities Exchange


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