Dubai Financial Market Co (DFM), the only listed Arab bourse, said first-quarter operating revenue almost tripled to Dh273 million after the market recovered.
Revenue from trading-commission fees almost tripled to Dh259 million, and net operating profit surged to Dh314.4 million, up from Dh94.8 million in the year-earlier period, the DFM said in a statement.
Net income fell to Dh314.4 million, or Dh0.0395 per share, compared with Dh562.9 million, or Dh0.0708 per share in the year-earlier period. The first-quarter 2007 earnings included Dh468 million of income from the Dubai government's 2006 initial public offering of the bourse.
"It's not a surprise to the market, because it's a result of the increase in trading volumes," said Rami Sidani, vice-president of asset management at Dubai-based investment bank Shuaa Capital. "Trading volumes were lower in the first quarter of last year as the market was beginning to recover from the decline of 2006."
After crashing in 2006, Dubai's main stock index struggled for much of last year, before surging in October. The index at the end of March this year was 5,351.89 points, compared with 3,727.31 points a year earlier.
"Investors are drawn to a market and a company that is dynamic," DFM Chairman Essa Kazim said in the statement. He could not immediately be reached for comment when Reuters called.
Shares in DFM, which fell 0.58 per cent on Sunday before the results were released, are down about 17 per cent this year, twice as much as the index.
Citigroup last month started coverage of DFM with a "buy" recommendation and a price target of Dh8.00 on expectations that Gulf economies would grow, on higher trading volumes and additional initial public offerings. The stock last traded at Dh5.15. (Reuters)
DFM bourse Q1 income jumps