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19 March 2024

DFM profit vaults 8-fold to Dh215.1 million

Published
By Reuters

Dubai Financial Market (DFM), the Gulf Arab region's only listed bourse, said on Wednesday that first-quarter net profit surged eightfold, outstripping analysts' expectations as trading volumes ballooned.

The exchange made Dh215.1 million ($58.6 million) in the opening three months of 2014, compared with Dh27 million in the corresponding period of last year, it said in a statement.

Analysts at HSBC and Global Research had expected a quarterly profit of Dh202 million and Dh109 million, respectively.

Trading commissions are the main source of income for DFM, and trading activity rose sharply as the equity market recovered from the global financial crisis.

The value of traded securities jumped 429 percent during the first quarter of 2014 to Dh110 billion, DFM said.

The company's total revenue increased 289 percent to Dh255.6 million in the quarter. Operating expenses rose to Dh40.5 million from Dh38.7 million.

Dubai's stock market is one of the best performers in the world this year and DFM's main index rose 32 percent in the first quarter.

Index compiler MSCI will upgrade Dubai, as well as Abu Dhabi and Qatar, to emerging market status at the end of May, which has prompted increased interest from foreign investors.