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29 March 2024

DFM H1 net surges 140%

Published
By Wam

Dubai Financial Market Company (PJSC) announced its financial results for the first half of the year ending June 30, 2012, recording a net profit of Dh40.6 million, a 140 per cent increase compared to the corresponding period of 2011.

The net profit of the second quarter 2012 reached Dh10.2 million, a 31 per cent decrease compared to Q2- 2011.

The company recorded total revenue of Dh118.7 million in H1-2012, compared to Dh113.3 million during H1- 2011.

The revenue comprised of Dh94.3 million of operating income and Dh24.4 million of investment returns.

The company expenses reached Dh78.1 million compared to Dh96.4 million recorded during H1-2011.

During the second quarter of 2012, revenue reached Dh49.6 million compared to Dh64.6 million in the second quarter of 2011, whilst expenses amounted to Dh39.4 million in the same period compared to Dh49.9 million during Q2- 2011.

It is noteworthy that the DFM trading value has significantly improved by 45.5 per cent to Dh32.3 billion during the first six months of this year compared to Dh 22.2 billion in the corresponding half of last year.

The trading value in H1-2012 surpassed its levels during the entire year of 2011.

Meanwhile, the trading value increased 4.7 per cent to Dh11.8 billion in the second quarter of 2012 compared to Dh11.3 billion in the same period of 2011.

Abdul Jalil Yousef Darwish, Chairman of Dubai Financial Market (PJSC) said: "As the trading commissions represent the main revenue stream, the significant improvement of DFM trading activity since the beginning of the year has left its positive mark on the Company's revenue and profit.

“The trading value of the first half of the year surpassing its levels witnessed throughout the full year of 2011, is undoubtedly a strong indication of the investors' reignited interest in the diversified opportunities offered at DFM and the exchange's various competitive advantages and leading position amongst regional markets."

As a result, he continued "DFM is evidently leading as the best performing regional market with its general index increasing 14% year to date.

“Additionally, the daily average of trading value increased 44% during the first six months of this year to Dh252 million compared to Dh175 million during the same period of 2011. We believe that the trading activity over the last few months represents an encouraging indication of restoring the common market activity levels in the future.

“We are deeply confident that DFM is fully geared up for a new era of sustainable growth owed to a series of strategic initiatives aimed to further improving its infrastructure according to international best practices.

“The exchange has successfully implemented 18 initiatives over the past two years as part of the new strategy adopted by the Board of Directors at the beginning of its tenure." Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market (PJSC) said: "DFM's efforts are centered around further stimulating the role of financial markets in supporting the economy through productive discussions with various participants including public and private companies, regulators, financial consultancies and investment banks.

“Our objective is to attract new companies from unrepresented sectors and diversify investment opportunities and asset classes through the introduction of new financial products."

He added: "The DFM also encourages market participants to further embrace international best practices leading to augmenting Dubai's leading position as the international financial hub in the region.

“For this purpose, DFM has intensified its communication with its current and potential participants during the past few months through a variety of initiatives including the organisation of its second interactive workshop on "Achieving Good Investor Relations and Corporate Governance", in May 2012. Over 140 delegates representing 80 companies attended this workshop which was aimed at empowering current and potential issuers to adopt international best practices and further interact with the investing community.

“Additionally, we have pursued our efforts to support small and medium enterprises (SME's) to go public in the future. DFM and NASDAQ Dubai have joined hands with the Dubai SME to educate this important category on how to utilize the capital markets."