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Essa Kazim ... market shows resilience.

Dubai Financial Market Q2 net profit falls 60pc

DUBAI, July 25, 2016

Dubai Financial Market (DFM), the Gulf's only listed stock exchange, reported a 60 percent fall in second-quarter net profit on Monday as revenue fell.

The firm made a net profit of Dh53.5 million ($14.6 million) in the three months to June 30, down from Dh132.4 million in the year-ago period, it said in a statement.

Revenues fell to Dh100 million in the quarter, compared with Dh178.1 million in the corresponding three months of 2015.

Trading commissions are the main source of income for DFM. While it did not provide a quarterly breakdown, the firm said the value of shares traded in the first six months of 2016 was down 32.7 percent year on year to Dh69.5 billion.

Dubai's government owns a majority stake in DFM through holding company Borse Dubai.

Essa Kazim, chairman of DFM, said: “The slowdown in trading activity during the first half of 2016 has overshadowed the revenue and profit of the DFM Company. Meanwhile, the market has demonstrated a high level of resiliency considering the unfavourable circumstances of lower oil prices as well as international markets’ volatility. The DFM General Index has been one of the best performing amongst leading indices globally advancing more than 5 per cent during the first half. Additionally, foreign investors (excluding Arabs and GCC nationals) have increased their participation on the market from 16 per cent during the first half of 2015 to 17 per cent during the same period of 2016 and they were net buyers of Dh1.4 billion, a 53.6 per cent increase, which clearly underlines their growing confidence in the market.”

Commenting on DFM’s plan to build a new headquarter in the Business Bay, Kazim said: “Preparations are under way to outline necessary plans for the implementation including engaging project managers and advisors. We are looking for front-line premises that serves the objectives of DFM and its participants, including brokerage firms, financial services’ advisors, custodians and other service providers. We are emphasising on building a smart and sustainable headquarter in line with our 'Smart Borse' strategy and the leading position of Dubai as a global financial hub.”

The DFM has received a cost-free plot of land exceeding 10,000 sq m with approximate value of Dh231 million from Dubai Properties in order to build the new headquarter.  - Reuters and TradeArabia News Service




Tags: Dubai Financial Market | profit | DFM |

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