Revenue declines by 5 per cent
Dubai Financial Market’s (DFM’s) first quarter profit fell 8 per cent to AED53.6m ($14.6m) compared to AED58.5m in the same period last year. The slump in profit is a 39 per cent decline quarter-on-quarter.
The bourse also recorded a 5 per cent fall in total revenue to AED90.4m in the first three months of 2010 from AED95.3m during the corresponding period of 2009.
Overall trading value in the first quarter rose by an annual 5 per cent to AED28.98bn.
“We hope that the market gains more momentum that enhances the possibility of recording more positive results by the end of 2010,” says Essa Kazim, managing director and chief executive of DFM.
DFM’s profit fell by nearly half in 2009 as market turnover slumped 43 per cent to a five-year low of AED173bn.
“We believe Dubai World reaching a positive resolution with its bank creditors could partially alleviate the prevailing uncertainties and risk extended to the DFM, and as such, entice more activity on the exchange,” says Dubai-based investment bank SHUAA Capital in a research note published on 2 May.
“However, at the same time, we are highly sceptical that financial year 2010 traded values could exceed our recently revised traded value target of AED169.8bn, equivalent to AED653m in average daily traded value.”
DFM elected a new board of directors during its annual meeting held on 21 April. The bourse held its first meeting on 1 May and elected Abdul Jalil Yousef as chairman and Rashid Al-Shamsi as vice-chairman.
Kazim served as the former chairman of DFM, but was re-elected to his current role for a tenure of three years.
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