Abu Dhabi bourse to work with FTSE

The Abu Dhabi bourse will work with the FTSE Group to create indexes for exchange-traded funds and help reduce volatility in a market dominated by retail investors, a bourse official said on Monday.

The Abu Dhabi Securities Market, the smaller of two domestic bourses in the oil-exporting United Arab Emirates, is showcasing 11 of its largest companies to investors in London.

"We want to create and co-brand indices in an attempt to set up the infrastructure for the ETF market," Elie Ghanem, the bourse's senior management business development consultant, told Reuters on the sidelines of the presentation.

The agreement with FTSE would be signed later on Monday, he said.

Exchange-traded funds are listed and traded like individual stocks but offer investors exposure to a range of assets or market indexes, whether in bond, commodity or equity markets.

"The challenge we have is there is lot of liquidity but not a lot of securities," Ghanem said.

"These indices will give investors, especially individual investors, the opportunity to diversify."

Individuals accounted for around 60% market's total investor base, he said.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM