DFM income jumps as market recovers
Dubai Financial Market Company (DFM), the only listed Arab bourse, said first-quarter operating revenue almost tripled to 273 million dirhams ($74.32 million) after the market recovered.
Revenue from trading-commission fees almost tripled to 259 million dirhams, and net operating profit surged to 314.4 million dirhams, up from 94.8 million dirhams in the year-earlier period, the DFM said in a statement.
Net income fell to 314.4 million dirhams, or 0.0395 per share, compared with 562.9 million dirhams, or 0.0708 dirhams per share in the year-earlier period, it said. The first-quarter 2007 earnings included 468 million dirhams of income from the Dubai government's 2006 initial public offering (IPO) of the bourse.
"It's not a surprise to the market, because it's a result of the increase in trading volumes," said Rami Sidani, vice president of asset management at Dubai-based investment bank Shuaa Capital. "Trading volumes were lower in the first quarter of last year as the market was beginning to recover from the decline of 2006."
After crashing in 2006, Dubai's main stock index struggled for much of last year, before surging in October. The index at the end of March this year was 5,351.89 points, compared with a 3,727.31 points a year earlier.
"Investors are drawn to a market and a company that is dynamic," DFM Chairman Essa Kazim said in the statement. He could not immediately be reached for comment when newswire Reuters called.
Shares in DFM, which fell 0.58% on Sunday before the results were released, are down about 17% this year, twice as much as the index.
Citigroup last month started coverage of DFM with a "buy" recommendation and a price target of 8.00 dirhams on expectations that Gulf economies would grow, on higher trading volumes and additional IPOs. The stock last traded at 5.15 dirhams. (Reuters)
Revenue from trading-commission fees almost tripled to 259 million dirhams, and net operating profit surged to 314.4 million dirhams, up from 94.8 million dirhams in the year-earlier period, the DFM said in a statement.
Net income fell to 314.4 million dirhams, or 0.0395 per share, compared with 562.9 million dirhams, or 0.0708 dirhams per share in the year-earlier period, it said. The first-quarter 2007 earnings included 468 million dirhams of income from the Dubai government's 2006 initial public offering (IPO) of the bourse.
"It's not a surprise to the market, because it's a result of the increase in trading volumes," said Rami Sidani, vice president of asset management at Dubai-based investment bank Shuaa Capital. "Trading volumes were lower in the first quarter of last year as the market was beginning to recover from the decline of 2006."
After crashing in 2006, Dubai's main stock index struggled for much of last year, before surging in October. The index at the end of March this year was 5,351.89 points, compared with a 3,727.31 points a year earlier.
"Investors are drawn to a market and a company that is dynamic," DFM Chairman Essa Kazim said in the statement. He could not immediately be reached for comment when newswire Reuters called.
Shares in DFM, which fell 0.58% on Sunday before the results were released, are down about 17% this year, twice as much as the index.
Citigroup last month started coverage of DFM with a "buy" recommendation and a price target of 8.00 dirhams on expectations that Gulf economies would grow, on higher trading volumes and additional IPOs. The stock last traded at 5.15 dirhams. (Reuters)
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