ABU DHABI: The Abu Dhabi Securities Exchange (ADX) continued its ambitious growth trajectory from the beginning of the year until the end of the third quarter, registering a 16.9% gain on its benchmark index FTSE ADX 15 (FADX 15). The gain was supported by a rise in 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.
From the beginning of the year to end of Q3, traded values (buy + sell) on the exchange reached AED 648.9 billion compared to AED 495 billion during the same period last year, an increase of 31%. From the beginning of the year to end of Q3 also witnessed net foreign investment reaching AED 19.8 billion compared to AED 7.1 billion during the same period last year which is a 176% increase, and a 28.7% increase in the value of shares traded by institutional investors to AED 541.5 billion in the same period. The market capitalization of stocks listed on ADX increased 59.7% to AED 2.2 trillion at end of Q3 from AED 1.38 trillion during the same period in 2021.
Year to end of Q3 trading values for ETFs on ADX reached AED 886.9 billion, an increase of 744% from AED 105 billion compared to the same period in 2021, thus making ADX’s ETF market the most liquid in the region. Reflecting the exchange’s commitment to encouraging the pipeline for index-linked products, a Turkey-focused ETF was listed on the exchange in the third quarter. The Chimera S&P Turkey Sharia ETF began trading on ADX on August 1, bringing the total number of ETFs on the exchange to seven, the highest number of ETFs on a MENA exchange.
To support the increased demand for passive strategies, ADX partnered with FTSE Russell this year to create a suite of indices, including the introduction of the FTSE ADX Growth Market Index (FADGMI) in the third quarter. The measure provides investors with the ability to mimic the performance of the Growth Market, a trading platform for fast-growing companies starting their capital market journey. Traded values on the Growth Market in the first nine months of the year increased 147.7% year on year to AED 20.1 billion while the market capitalization increased 84.8% to reach AED 76.6 billion as of the end of Q3 2022.