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Abu Dhabi / WAM
The Abu Dhabi Securities Exchange (ADX) continued its strong growth trajectory during the first three quarters of 2022, recording a 16.9 percent surge in its benchmark index, the FTSE ADX 15 (FADX 15).
The growth was driven by a rising number of institutional and individual investors on the exchange, a trading uptick on ADX’s fast-growing exchange traded funds (ETF) market, new listings, and the introduction of an index created in partnership with FTSE Russell.
During the first nine months of 2022, traded values (short and long trades) on the exchange reached AED648.9 billion, compared with AED495 billion during the same period last year, a rise of 31 percent.
The same period this year also recorded net foreign investments reaching AED19.8 billion, compared with last year’s figure of AED7.1 billion, a 176 percent increase, as well as a 28.7 percent increase in the value of stocks traded by institutional investors totalling AED541.5 billion over the same period.
The market value of stocks listed on ADX grew by 59.7 percent to AED2.2 trillion by the end of the third quarter from AED1.38 trillion during the same period in 2021.
Meanwhile, the trading value for ETFs on ADX reached AED886.9 billion, a surge of 744 percent from AED105 billion in the same period in 2021, making ADX’s ETF market the most liquid in the region.
In the third quarter, ADX launched an ETF that tracks the performance of Shariah-compliant stocks listed on the Borsa Ä°stanbul.
The Chimera S&P Turkey Shariah ETF began trading on ADX on August 1, therefore, increasing the number of ETFs in the market to seven.
To support the growing demand for passive investment strategies, this year, ADX partnered with FTSE Russell to launch an index series, including the FTSE ADX Growth Market Index (FADGMI) in the third quarter.
Traded values in FADGMI in the first nine months of this year increased by 147.7 percent year-on-year to AED20.1 billion while market capitalisation increased by 84.8 percent, reaching AED76.6 billion as of the end of the third quarter of 2022.