The Dubai Financial Market (DFM) has unveiled the introduction of futures contracts based on its General Index (DFMGI), which encompasses the DFM’s most prominent and liquid listed companies. The listing and trading of DFMGI futures are set to commence today.
By trading futures contracts tied to the DFMGI, investors gain access to one of the world’s top-performing indices, comprising the DFM’s largest and most liquid stocks. This includes recently successful listings such as Empower, Dewa, Salik, along with renowned regional blue-chip companies like Emaar and Aramex, according to WAM.
The introduction of DFMGI futures brings forth substantial opportunities for diversification and hedging for both individual and institutional investors. Moreover, it aims to attract greater participation from professional investors, fostering market liquidity and depth.
DFMGI futures represent the latest innovative initiative by DFM to internationalize Dubai’s financial markets and enhance market liquidity. They provide investors with the ability to capitalize on both upward and downward movements of the index while potentially amplifying gains through leverage.
Hamed Ali, CEO of Dubai Financial Market, said, “The launch of DFMGI Future is further evidence of our commitment to diversify products and provide investors with unique investment and hedging opportunities. This is in line with our concerted efforts to bring innovative products to market to increase retail and institutional investor participation while increasing the depth and breadth of the market.”
The DFMGI displayed impressive performance, with a substantial 4.4% increase last year, followed by a robust growth of 6.14% from the start of 2023 until May 2023.
DFMGI futures are designed to closely mirror the price movements of the underlying DFM General Index, which serves as a benchmark for the overall performance of the Exchange. These futures contracts offer investors an effective means to hedge against market volatility and capitalize on profitable trading opportunities.
The DFMGI encompasses various crucial sectors, including Financials, Industrials, Real Estate, Utilities, Communication Services, Transportation, and more. By tracking these sectors, the DFMGI provides comprehensive coverage and insight into the overall market performance.
