Jewellery group Damas International became the first retail stock on the Dubai International Financial Exchanges index yesterday.

However, trading on Damas stock on the debut day was listless with very limited transactions and movement in the stock.

The stock gained five cents only during the first day of trading through six transactions of 331,775 shares at a total value of Dh348,364.

At a ceremony announcing the start of trading on Damas shares, Jeff Singer, the newly-appointed CEO of the DIFX, said that the index would focus on the quality of listed companies to ensure the success of the index.

Earlier, PK Dutta, chief financial officer of Damas, said that it is planning to invest the $27.6 million (Dh101m) raised through IPO this month in organic and inorganic expansions as well as restructuring its debt until 2010.

He added that the fund would finance plans to open 50 new retail branches this year, so the total of Damas's new branches in 2008 will jump to 130, increasing its total to 569 branches.

"We also eye acquisitions in international jewellery market – manufacturers and retail firms, especially in China. We are looking at potential options and the decision will be taken after two to three months," he said during the launching of trading on Damas stock in the DIFX. Dutta said the firm may consider another listing of shares, but this may take from six to eight months.

He also highlighted volatility in the global gold markets, which may affect the industry. "What was surprising is that demand for gold jewellery in Damas increased by eight per cent during the first quarter this year compared to the same period last year despite price rise.

Tawhid Abdullah, CEO of Damas, said net profits of Damas during the second quarter this year would increase by more than 20 per cent compared to the same period last year. Damas announced profits of Dh79m during the first quarter of 2008, while its total profits in 2007 reached Dh209m.

"Our total revenues are projected to reached Dh4 billion this year. The average growth in Damas profits during the past ten years reached 15.5 per cent per annum," Abdullah said.

According to the chief financial officer, Damas achieved total revenues of Dh3.2bn in 2007.