|21 July, 2019

DFM Company posts net profit during the first half of 2019

The DFM attracted 904 new investors, including 90 institutions

DFM Company posts net profit during the first half of 2019

H.E. Essa Kazim underlining DFM’s performance indicators of the first half:

  • Net purchases of foreign investors reached AED 1 billion
  • The DFM attracted 904 new investors, including 90 institutions, lifting its investor base to 844 thousand investors
  • Institutions’ ownership reached 83.6% of the Market Capitalization with 52.3% share of trading
  • Foreign investors maintain their active presence with 50% of trading and 17.5% ownership of the Market Capitalization
  • DFM’s International Investors Roadshow in New York attracts 21 new institutions
  • The DFM General Index advanced 5% against the prevailing down trend globally delivering a positive note on the course of the market
  • The DFM received the Dubai Quality Award and the EFQM’s “Recognized for Excellence” Award

Dubai: Dubai Financial Market (PJSC) today announced its financial results for the first half of the year ending 30 June 2019, registering a net profit of AED 65.1Million, compared to AED 82.8 Million during the corresponding period of 2018, a 21% decrease. The net profit of the second quarter of 2019 reached AED 37Million, a 9% increase compared to Q2- 2018 level of AED 33.9 Million.

The Company recorded a total revenue of AED 163.5Million in H1-2019 compared to AED 182.4 Million during H1- 2018. The revenue comprised of AED 88.8 Million of operating income and AED 74.7 Million of investment returns. The Company expenses reached AED 98.4 Million compared to AED 99.6 Million recorded during H1-2018. During the second quarter of 2019, the Company’s revenue reached AED 85.6 Million compared to AED 83.3 Million in the second quarter of 2018, whilst expenses amounted at AED 48.6Million in the same period compared to AED 49.4 Million during Q2- 2018.

It is noteworthy that during the first six months of 2019, the DFM trading value decreased to AED 25 Billion, a 31.5% decrease compared to the corresponding period of 2018. Trading commissions represent the main revenue stream of the DFM Company.

His Excellency Essa Kazim, Chairman of the Dubai Financial Market Company (PJSC) said: “The decline in DFM’s trading value echoes the prevailing trend of international exchanges during the first half of the year, as 74% of the global exchanges registered a decline in their traded value during the first five months of this year compared to the same period of 2018. Meanwhile, the DFM General Index has advanced 5% and we believe that this reasonable growth is a good indication considering the down trend that prevailed in most of exchanges globally, as 47 exchanges, representing two thirds of the members of the World Federation of Exchanges (WFE) have witnessed a decline in their indices. We are looking forward to see this good indication gaining further momentum during the coming period considering DFM’s world-class infrastructure and lucrative opportunities supported by the national economy’s dynamism and good growth rates.”

“During the first half of this year, the DFM has maintained its attractiveness to foreign investors as they have registered net purchases of AED 870 Million and it reached to nearly AED 1 billion when excluding GCC and Arab investors. The DFM has attracted 904 new investors during the first half, including 90 institutions, lifting total number of DFM’s investor base to 844,028 investors,” H.E. Essa Kazim added.

Investors Roadshow in New York achieves significant success

It is noteworthy that the DFM plays an active role in attracting foreign investments and strengthening listed companies’ links with international investors. Within this context the DFM   International Investors Roadshow in New York 2019 has witnessed significant participation from international investment institutions. The event enabled 9 listed companies to hold 81 One-on-One meetings with senior representatives of 35 international institutions managing approximately US$ 3.2 Trillion of assets. The roadshow attracted 21 new institutions that took part for the first time, representing 60% of the total number of institutions.

Strong presence of foreign and institutional investments

The DFM maintains a strong presence of foreign and institutional investments with more than 11 thousand institutions registered on the market, including 90 institutions during the first half of 2019. Institutions’ ownership reached 83.6% of the Market Capitalization at the end of the first half of 2019 with 52.3% share of trading. Similarly, foreign investors are maintaining their active presence with 50% of trading during the first half of 2019 and they own 17.5% of the Market Capitalization.

Awards

During the first half of 2019, the DFM won two new awards, the Dubai Quality Award (DQA), for the financial sector category as well as the Five Star “Recognized for Excellence” Award earlier of the year from the European Foundation for Quality Management (EFQM), in recognition of its commitment to highest levels of quality in customer service. The recognition from the first application crowns DFM’s momentous excellence journey throughout its entire history, noting that the evaluation of DFM has clearly indicated that it maintains an excellent business environment for its operations, procedures and services provided to market participants.

-Ends-

About Dubai Financial Market:

Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 Billion, DFM became a public joint stock company and its shares were listed on 7 March 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae 

For media inquiries, please contact:
Atef Fathy
Vice President- Head of Media & Public Relations
Dubai Financial Market
Tel: 04-3055334
Email: afathy@dfm.ae 

© Press Release 2019

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