10.56 AM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Dubai stock market chief sees strong IPO pipeline

Essa Kazim is expecting a good number of companies converting into public joint stock companies and list on the emirate’s bourse. (File)

Published
By Staff

Dubai Financial Market Co. (DFM) Chairman Essa Kazim is expecting a good number of companies converting into public joint stock companies and list on the emirate’s bourse.

“We expect further listings over the coming period considering the bursting pipeline of companies that are in advanced stages of transforming into public joint stock company and list on DFM and this will further boost trading activity in the future," Kazim said.

“Earlier in the year, we have welcomed the listing of Damac Properties as the most recent addition to our issuers.

During the second half of 2014, DFM listed four new public joint stock companies from some of the most dynamic and unrepresented sectors, namely tourism, education, healthcare and retail, in a step that reemphasises the success of our strategy aimed at achieving the best possible representation of main economic sectors in Dubai,” he said, adding that DFM is seeing intensified interest from various investor categories following its classification as emerging market supported by its highly advanced regulations and all-inclusive infrastructure in line with international best practices.

DFM net plunges 69%


DFM reported net profit of Dh67.7 million for the first quarter of 2015, a 69 per cent decline compared to Dh215.1 million during the corresponding period of 2014 due to drop in trading value.

Total revenue decreased by 55 per cent to Dh114.5 million in compared to Dh255.6 million, the company said in a media statement.

The revenues are comprised of Dh96.9 million of operating income and Dh17.6 million of investment returns. Meanwhile, operating expenses reached Dh46.8 million during Q1 2015 compared to Dh40.5 million during the same period of 2014.

DFM’s trading value has dropped 65.3 per cent during the first quarter to Dh38.2 billion compared to Dh110 billion during the corresponding period of last year.

“During the first quarter, trading activity has been significantly hindered due to some circumstances that clearly isolated from the strong fundamentals of the national economy or the outstanding performance of listed companies,” said Kazim.

“The sharp decline of oil prices in 2014 has hindered sentiment and accelerated the slowdown leading to a 66 per cent decline in the average daily of trading value to Dh606.4 million compared to Dh1.7 billion during the same period of last year and subsequently overshadowed our revenue.

“I firmly believe that these are passing circumstances. For instance, oil prices are relatively stabilising near levels way above many analysts anticipated.

The UAE remains amongst the least affected in the region. More importantly, macroeconomic indicators are positive and promising. The national economy maintains its high growth rates of almost 5 per cent, as a result of the successful economic diversification policies.

Liquidity in the banking system is comforting with deposits up 11 per cent to Dh1.4 trillion and bank credit up 8 per cent to Dh1.38 trillion by the end of 2014,” Kazim said.