DFM Company Q1 profit soars

Dubai Financial Market Company, or DFM, on Monday said its first-quarter net profit recorded 14-fold jump to Dh30.5 million as the trading volumes rebounded. The only publicly traded Arab stock market said total revenue surged 42 per cent to Dh69.1 million from Dh48.7 million in the same quarter last year. The first quarter of 2012 revenues comprised of Dh57 million of operating income and Dh12.1 million of investment returns. Meanwhile, operating expenses reached to Dh38.6 million compared to Dh46.5 million during the first quarter of 2011, the bourse regulator said in a statement. “DFM has started the year 2012 in a promising mode due to various positive developments at the macroeconomic level and the individual sectors in the Emirate of Dubai,” Abdul Jalil Yousef Darwish, chairman of DFM, said. He said GDP in Dubai grew 2.8 per cent in real terms last year and it is expected to grow above four per cent in 2012. “This was mirrored on the DFM listed companies’ performance which invigorated investor sentiment by disclosing good financial results and rewarding cash dividends, which eventually reflected positively on the revenue and profit of the DFM Company,” he added. “In fact, the positive results during the first quarter of 2012 are not only attributed to the improved performance but also to the new revenue streams which increased 47 per cent to Dh1.53 million compared to Dh1.04 million in the same period last year.” He said the DFM Company is implementing an ambitious strategy to diversify revenues, limit dependency on trading commissions and achieve a more balanced revenue structure similar to the prevailing levels in the international markets. “We believe that the improved market activity and the diversification strategy adopted by the board of directors will gain momentum leading to a new beginning which will further boost the company’s performance in the future,” he added. Essa Abdul Fattah Kazim, managing director and CEO of DFM, said: “The local and foreign investors’ mounting enthusiasm towards DFM reaffirms their firm belief in the underlying value of our market and the opportunities it provides. More importantly, this reflects the investor’s confidence in the strong fundamentals of the national economy.” He said the DFM has successfully registered 2,613 new investors in first quarter, a 93.5 per cent growth in comparison to 1,350 investors during the corresponding period of 2011. “The re-ignited sentiment towards listed securities, led to an 87.7 per cent jump in trading value during the first quarter to Dh20.47 billion compared to Dh10.91 billion. The strong improvement in trading activity during the first quarter has placed DFM at the forefront once again as one of the best performing exchanges worldwide with a 23 per cent growth of its general index. “We believe that the year 2012 represents a new beginning as our exchange is well positioned to continue its positive performance thanks to the national economy’s strength and dynamism, in addition to the numerous market enhancements we have introduced to follow international best practices,” he concluded.