The ADX aligns with FTSE for a broad alliance that starts with renaming the ADX General Index. Image Credit: Gulf News Archive

Dubai: From today (January 10), the Abu Dhabi stock market will have a FTSE touch.

This means the ADX General Index, the main one for the Dh1.5 trillion market cap stock exchange, will be branded as ‘FTSE ADX General Index’. This follows an alliance between ADX and FTSE Russell to develop co-branded indices. FTSE Russell is owned by London Stock Exchange Group.

Thus, the ‘FTSE ADX’ sector indices will take the place of the existing sector indices. ADX is the first exchange in the region to make FTSE Russell its index administrator. The FTSE Russell has nearly $16 trillion benchmarked to its various indexes.

Further new indices will be co-developed under the partnership to support ADX’s “vision of introducing new tradable index products on its market”. The exchange launched single stock futures in the fourth quarter of last year following an agreement sealed in September with Nasdaq in September to deliver matching, real time clearing and settlement technology as ADX broadens its asset class offerings.

“Our partnership with FTSE Russell is part of ADX’s wide-ranging strategy to develop a dynamic exchange, which includes investment in state-of-the art market technology and increasing the opportunity set for investors and issuers,” said Saeed Hamad Al Dhaheri, CEO and Managing Director of Abu Dhabi Securities Exchange. “The new range of FTSE-ADX indices will provide robust benchmarks and support the listing of index derivatives, ETFs other index-based products on the exchange.”

ADX just had a stellar year
The ADX’s benchmark index, the ADI, crossed the 9,000-point threshold in 2021 for the first time. The benchmark gauge rose 64% last year, making it one of the best performing exchanges in the world.

At the same time, the exchange’s market cap more than doubled to Dh1.6 trillion with net foreign investment reaching Dh15.2 billion.