DFM net jumps 14-fold in Q1; hits $8m
Dubai, May 7, 2012
Dubai Financial Market Company has recorded a net profit of Dh30.5 million ($8.3 million) for the first quarter of the year, marking a 14-fold jump compared to net profit during the corresponding period of 2011.
The company recorded total revenue of Dh69.1 million in the first quarter of 2012 compared to Dh48.7 million during the same period of 2011, a 42 per cent increase. The first quarter of 2012 revenues comprised of Dh57 million of operating income and Dh12.1 million of investment returns.
Meanwhile, operating expenses reached to Dh38.6 million compared to Dh46.5 million during the first quarter of 2011.
Abdul Jalil Yousef Darwish, chairman of Dubai Financial Market said: “DFM has started the year 2012 in a promising mode due to various positive developments at the macroeconomic level and the individual sectors in the Emirate of Dubai, with the GDP growing 2.8 per cent in real terms during 2011 and is expected to grow above 4 per cent in the year 2012.”
“This was mirrored on the DFM listed companies’ performance which invigorated investor sentiment by disclosing good financial results and rewarding cash dividends, which eventually reflected positively on the revenue and profit of the DFM Company.
“In fact, the positive results during the first quarter of 2012 are not only attributed to the improved performance but also to the new revenue streams which increased 47 per cent to Dh1.53 million during the first quarter, compared to Dh1.04 million during the first quarter of 2011,” he said.
“The DFM Company is implementing an ambitious strategy to diversify revenues, limit dependency on trading commissions and achieve a more balanced revenue structure similar to the prevailing levels in the international markets. We believe that the improved market activity and the diversification strategy adopted by the Board of Directors will gain momentum leading to a new beginning which will further boost the company’s performance in the future,” he added.
Essa Abdul Fattah Kazim, managing director and CEO of Dubai Financial Market said: “The local and foreign investors’ mounting enthusiasm towards DFM reaffirms their firm belief in the underlying value of our market and the opportunities it provides.”
“More importantly, this reflects the investor’s confidence in the strong fundamentals of the national economy which is blessed with high level of growth and vibrant and diversified sectors. During the first quarter of 2012, DFM has successfully registered 2613 new investors, a 93.5 per cent growth in comparison to 1350 investors during the corresponding period of 2011.”
“The re-ignited sentiment towards listed securities, led to an 87.7 per cent jump in trading value during the first quarter to Dh20.47 billion compared to Dh10.91 billion. The strong improvement in trading activity during the first quarter has placed DFM at the forefront once again as one of the best performing exchanges worldwide with a 23 per cent growth of its general index,” he noted.
“We believe that the year 2012 represents a new beginning as our exchange is well positioned to continue its positive performance thanks to the national economy’s strength and dynamism, in addition to the numerous market enhancements we have introduced to follow international best practices,” Kazim concluded. – TradeArabia News Service