DFM net profit down 11.5pc in Q1
Dubai, May 8, 2013
Dubai Financial Market Company (DFM) said its net profit fell 11.5 per cent in the first quarter to Dh27 million ($7.3 million) from Dh30.5 million in 2012, but the bourse saw its trading value up 1.7 per cent.
Announcing the first quarter results, DFM said the company recorded a total revenue of Dh65.7 million for the period compared to Dh69.1 million last year, registering a drop of 5 per cent. The first quarter revenues comprised Dh53.1 million of operating income and Dh12.6 million of investment returns, it stated.
Meanwhile, operating expenses have settled near its first quarter- 2012 level of Dh38.7 million.
According to DFM, the trading value was up 1.7 per cent during the first quarter which soared to Dh20.8 billion compared to Dh20.4 billion during the corresponding period of 2012. 'Trading commission is the main source of income for the DFM Company,' it stated.
Commenting on the results, chairman Abdul Jalil Yousuf Darwish said, “DFM company has witnessed several momentous developments during first quarter including the launch of “Standard for Issuing, Acquiring, and Trading Sukuk” draft, the first-of-its-kind comprehensive standard in January. A hearing session was held this March, in preparation for the issuance of this standard in its final shape."
This significant standard is DFM’s response to the increased demand from investors to Shari’a compliant products as well as it reflects DFM’s commitment to take the necessary actions to implement Dubai’s initiative as the capital of Islamic Economy and the global center of Sukuk, observed Darwish.
"Therefore, DFM and Nasdaq Dubai Sukuk listings have gained momentum during the first quarter with listings from Government of Dubai, Emirates and Dewa lifting the nominal value of Sukuk listings on Dubai exchanges to $ 11.6 billion, the third biggest sukuk listing platform globally," he added.
According to him, DFM will carry on with its widespread efforts aimed to creating a favorable environment for Islamic Economy prosperity by introducing the necessary standards and regulations to encourage local and international institutions to tap the Islamic Finance route and issue and list Sukuk on Dubai capital market.
Managing director and CEO Essa Abdul Fattah Kazim said DFM has started 2013 on a very positive mode with trading value jumping by 300 per cent in January.
"DFM was amongst the best performing exchanges with its General Index up 12.7 per cent by the end of first quarter-2013, despite the slowed down of trading activity during the rest of the quarter," stated Kazim.
The exchange, he pointed out, had successfully attracted net foreign investments of Dh500 million in first quarter, which indicates the improved investor appetite towards the market and the constant expansion of the key economic sectors in Dubai.
Additionally, DFM has accredited three new brokerage firms as margin trading providers, lifting the total number of firms offering this service to DFM investors to 6, he added.-TradeArabia News Service
More Finance & Capital Market Stories
- Qatar IPOs to top $13 billion next 10 years
- United Arab signs $250m syndicated loan
- Standard Life sets up Asia advisory board
- UAE among 20 most attractive countries for M&A
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up