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28 February 2024

DFM 2014 profit jumps 167%

DFM reclassification by MSCI attracted Dh4bn in net foreign inflows in 2014. (File)

By Staff & Reuters

Dubai Financial Market (DFM), the Gulf's only listed stock exchange, reported a 31 per cent rise in fourth-quarter net profit on Monday as trading volumes increased.

The firm, which runs securities trading in Dubai, made a net profit of Dh138.2 million ($37.63 million) in the three months to December 31, up from a net profit of Dh105.4 million in the year-ago period, Reuters calculated using company figures.

Global Investment House had forecast DFM would fourth-quarter net profit of Dh120 million.

DFM's full-year profit rose 167 per cent to Dh759.3 million, it said in a statement.

Trading commissions are the main source of income for DFM and daily trading activity rose to 639.5 million shares in 2014 from 510.7 million shares in 2013.

DFM's board has proposed paying a cash dividend of 7 fils per share for 2014, up from 5 fils per share in 2013.

The daily average trading value increased by 136.7% rising to Dh1.5 billion in 2014 compared to Dh642 million in 2013. The total trading value for the year jumped by 138.6% rising to Dh381.5 billion, compared to Dh159.8 billion in 2013.

In the same context, the daily average number of traded shares grew by 25% recording 639.5 million shares a day in 2014 compared to 510.7 million shares a day in 2013.

Essa Kazim, Chairman of Dubai Financial Market, said: "We saw robust economic performance as our national economy has been maintaining an average growth rate of 4.2% since 2010; and is likely to record higher growth rates ranging between 4.5% and 5% for the year 2014 and beyond. Obviously, such situation had a positive impact on the performance of listed companies, and enhanced the confidence of and demand by the investors in the market."

Dh4bn FDI

The reclassification of the UAE by leading international agencies such as MSCI and S&P Dow Jones in 2014 attracted net foreign investment in-flow to the DFM that amounted to Dh4 billion during the year 2014, which also saw 27,000 new investors joining the vast investor base to exceed 833,000 investors.

"The DFM has experienced an impressive revival of IPOs in 2014 with the listing of four new public joint-stock companies: Marka, Emaar Malls, Amanat Holding, and Dubai Parks & Resorts as well as the listing of Damac Properties Dubai as the debut listing of 2015. Obviously, the attraction of companies operating in fast-growing vital sectors that are not represented in the Market, including education, health, retail and entertainment sectors is the best proof of the efficiency of DFM strategy in this regard. As we sought, and continue to seek, to realize the best possible representation of the key economy sectors," Kazim said.