DFM Company net profit surges 384% to Dhs 467.6m during the first half of 2014
Dubai Financial Market Company (PJSC) today announced its financial results for the first half of the year ending June 30th 2014, recording a net profit of AED 467.6 Million, compared to AED 96.5 Million during the corresponding period of 2013, a 384% increase. The net profit of the second quarter 2014 reached 252.5 Million, a 263% increase compared to Q2- 2013 level of AED 69.5 Million.
The Company recorded a total revenue of AED 552.1 Million in H1-2014 compared to AED 178.4 Million during H1- 2013. The revenue comprised of AED 524.5 Million of operating income and AED 27.6 Million of investment returns. The Company expenses reached AED 84.5 Million compared to AED 81.9 Million recorded during H1-2013. During the second quarter of 2014, the Company’s revenue reached AED 296.5 Million compared to AED 112.7 Million in the second quarter of 2013, whilst expenses amounted to AED 44 Million in the same period compared to AED 43.2 Million during Q2- 2013.
It is noteworthy that the DFM trading value jumped 303% to AED 237.06 Billion during the first six months of this year compared to AED 58.8 Billion in the corresponding half of last year. Meanwhile, the trading value increased 234% to AED 126.9 Billion in the second quarter of 2013 compared to AED 38 Billion in the same period of 2013. Trading commissions represent the main revenue stream of the DFM Company.
His Excellency Essa Kazim, Chairman of Dubai Financial Market (PJSC) said: “DFM has sustained its momentum and remarkable performance during the first six months of the year 2014, which has been positively reflected on the company results. The DFM General Index continued its growth during the first half increasing to almost 60%continuing from DFM’s phenomenal performance witnessed in 2013, when it leapt 108%, leading the best performing exchanges globally. The index has ended the first half up 17% and swiftly bounced back to 44% year to date. The daily average of trading value has increased 303% to AED 1.9 Billion. Moreover, DFM attracted 18,927 new investors during the first half compared to 15,720 investors during the same period of 2013, a growth of 20.4% which signals investors’ confidence in DFM’s diversified and lucrative investment opportunities, the sophisticated services offered to investors and issuers, as well as its ability to sustain growth. Foreign investors accounted for 42.6% of total trading value during the first half with a net buy of AED 2.5 Billion.”
Highlighting some of the key developments during the first half of the year, HE Essa Kazim said: “DFM has managed to expand the scope of its issuer services including; the management of cash dividend distribution on behalf of 8 listed companies with a total value of AED 2.25 Billion through various tools including the iVESTOR card, providing the event management solutions to the annual meetings of 4 companies as well as enabling investors to effectively take part in the IPO of Marka recently through the DFM electronic IPO platform “eIPO”. Additionally, the exchange organized its international investor roadshow in London last May as part of its efforts to provide listed companies with an effective platform to connect with international investors and share their latest developments, achievements and growth plans. The event has attracted an enormous number of investment institutions and funds who are showing increasing interest in our market, in light of the UAE being classified as an emerging market. The tremendous turn out indicates the success of this event and international investor’s eagerness to deepen their knowledge about our listed companies. Furthermore, the DFM implemented a Pre-Closing Session mechanism to determine the Closing Price of Equity and Debt Securities last May as part of its continuous efforts to further develop the market infrastructure in line with international best practices. This step was introduced well in advance of the inclusion of the UAE to the MSCI’s Emerging Market category.”
“As part of our ongoing efforts aimed to realize the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, to position Dubai as the capital of the Islamic economy, the DFM officially published the final version of its “Standard for Issuing, Acquiring, and Trading Sukuk”, early April as a first of its kind comprehensive standard which provides issuers and investors the necessary framework and further promotes the growth in the Islamic finance sector, as one of the main pillars of the initiative. DFM’s steady efforts to encourage issuers to list their Sukuk on Dubai exchanges have played a pivotal role driving the total value of Sukuk listed on Dubai capital markets up to 20
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