DFM first half net profit declines along with volumes
Company records total revenue of Dh227m in first half of 2016
The Dubai Financial Market (DFM) said yesterday its net profit for the first half to June fell 30 per cent with trading volumes.
The bourse recorded a net profit of Dh139.6 million, compared to Dh200 million during the corresponding period of 2015. The net profit of the second quarter of 2016 reached Dh53.5 million, a 60 per cent decrease compared to same quarter of last year.
The company recorded a total revenue of Dh227 million in the first half of 2016 compared to Dh292.6 million during first half of 2015. The revenue comprised of Dh184.8 million of operating income and Dh42.2 million of investment returns.
The DFM trading value declined 32.7 per cent to Dh69.5 billion during the first six months of this year compared to Dh103.4 billion in the corresponding period of last year. Trading commissions represent the main revenue stream of the company.
“The slowdown in trading activity during the first half of 2016 has overshadowed the revenue and profit of the DFM Company,” Eisa Kazim, chairman of Dubai Financial Market (PJSC) said in a statement, adding “the market has demonstrated a high level of resilience considering the unfavourable circumstances of lower oil prices as well as international markets’ volatility”.
The DFM General Index has been one of the best performing The DFM General Index has been one of the best performing among leading indices globally, advancing more than 5 per cent during the first half. Additionally, foreign investors have increased their participation on the market from 16 per cent during the first half of 2015 to 17 per cent during the same period of 2016 and they were net buyers of Dh1.4 billion, a 53.6 per cent increase, underlining their growing confidence. among leading indices globally, advancing more than 5 per cent during the first half.
Additionally, foreign investors have increased their participation on the market from 16 per cent during the first half of 2015 to 17 per cent during the same period of 2016 and they were net buyers of Dh1.4 billion, a 53.6 per cent increase, underlining their growing confidence.
New headquarters
The company is planning to build a new headquarters in the Business Bay area of Dubai.
“Preparations are underway to outline necessary plans for the implementation, including engaging project managers and advisers. We are looking for front-line premises that serves the objectives of DFM and its participants including; brokerage firms, financial services advisers, custodians and other service providers. We are emphasising on building a smart and sustainable headquarters in line with our “Smart Borse” strategy and the leading position of Dubai as a global financial hub,” Kazim said.
The DFM has received a cost-free plot of land exceeding 10,000 square metres, with an approximate value of Dh231 million, from Dubai Properties in order to build the new headquarters.
The DFM said its development efforts were aimed at enhancing market infrastructure and regulations as per international practices.
DFM has launched the Direct Deals Service to streamline bulk deals on shares of a listed company within a fair and transparent environment while exempted from the price cap in effect (15 per cent up and 10 per cent down).
The market recorded Dh527 million of trading in rights issues of three listed companies.