Abu Dhabi Securities Exchange (ADX) today announced the introduction of its Investment Literacy Index and Market Sentiment Index. In early December ADX issued an E-questionnaire to assess the investment knowledge and understanding of ADX active and early-stage investors and the results of the survey have been used to derive an ADX Investor Literacy Index and a Market Sentiment Index. The questionnaire contained 2 sections, one posing questions to assess investors’ knowledge and openness to fraud and risk while the second aimed at analyzing demographics, investment patterns and market sentiment. The literacy survey is based on answering 17 questions and the respondents are not provided with the correct answers or their overall score since it is planned to repeat the survey in the future, and to assess any improvement or deterioration in the results. In the first phase of this innovative project, the survey ran from 8 December 2009 to 28 December 2009, a total of 20 days.
Nearly 1700 investors participated and a massive 94% completed the survey; a very good result. This is the first stage of a long term strategy to address investor literacy. ADX is very grateful for the support given by investors and has received responses from all Emirates, all GCC countries, as well as responses from the US, Canada, Europe, Asia and Australia.
The Abu Dhabi Economic Vision 2030 sets out concrete steps for economic and societal development. As a key part of its strategic plan, ADX has engaged with investors, as key stakeholders of the Exchange. The survey results which establish the Investment Literacy Index and Market Sentiment Index will form the basis for directing ADX’s market awareness and education programs. Although the survey initiative has just been completed, ADX is already assessing is current market awareness approach and considering new plans of action.
Rashed Al Baloushi, ADX Deputy Chief Executive, said, ‘We are delighted to have completed the first phase of this innovative project in an ongoing campaign to improve investor literacy. This we believe will make a substantial, long-term contribution to the development of Abu Dhabi society; one of the main driving forces of the Abu Dhabi Economic Vision 2030.’