DFM net profit soars 696pc in Q1
Dubai, April 23, 2014
Dubai Financial Market (DFM) has recorded a net profit of Dh215.1 million ($58.5 million) for the first quarter of the year, a 696 per cent leap compared to Dh27 million during the corresponding period of 2013.
The company’s total revenue has increased 289 per cent to D 255.6 million in Q1-2014 compared to Dh65.7 million during Q1 –2013. The revenues are comprised of Dh241 million of operating income and Dh14.6 million of investment returns. Meanwhile, operating expenses have reached to Dh40.5 million during Q1-2014 compared to Dh38.7 million during the same period of 2013.
DFM is witnessing thriving activity since the beginning of this year as the trading value has jumped 428.8 per cent during the first quarter of 2014 to Dh110 billion compared to Dh20.8 billion during the corresponding period of 2013. Trading commission is the main source of income for the DFM Company.
“DFM has led the best performing exchanges globally during the first quarter of 2014 with its General Index up 32 per cent, and the daily average of trading value up 428.8 per cent to Dh1.77 billion compared to Dh 336 million during the same period of 2013,” said Essa Abdulfattah Kazim, chairman of Dubai Financial Market.
“These indicators are the result of growing investor demand as they increasingly recognize the opportunities available on the market as well as the strong expansion of Dubai’s economic sectors. It also reflects the entirety of the market infrastructure in line with international best practices.
“During the first quarter of the year, DFM has issued the Securities Lending and Borrowing rules (SLB), as part of our constant efforts to meet the growing requirements of market participants. The first three months of 2014 have also witnessed an expansion in Margin Trading provision and Direct Market Access (DMA),” he added.
“The number of DFM Margin Trading providers has increased to 18 with the accreditation of 7 new providers, while the number DMA providers has increased to 9 with the accreditation of 3 new brokerage companies,” noted Kazim.
“These developments will further boost market activity during the coming period with the accessibility to new sources of liquidity as well as offering international investors the opportunity to directly trade on the market.” – TradeArabia News Service