Dubai Financial Market company posts Dhs186.8m net profits in first half year-2009

Dubai Financial Market (PJSC) today announced its financial results for the second quarter of the year ending June 30th 2009, recording a net profit of Dhs128.3m, compared to Dhs58.5m in the previous quarter, representing a growth of 119%.

Net profits for the first half of 2009 stood at Dhs186.8m. The big leap in Q2 net profits reflects the significant increase in market activity as total trade value jumped 113% to Dhs58.8bn compared to Dhs27.6bn in Q1 2009.

DFM company recorded total revenue of Dhs166.4m, including Dhs136.7m from operating income and Dhs29.7m representing the return on investments for the second quarter of 2009. Total revenue stood at Dhs95.3m in the first quarter of 2009.

Essa Kazim, Executive Chairman of Dubai Financial Market ‘PJSC’ said: ‘The market witnessed good performance during the second quarter of 2009, with significant increase in different market indicators such as trading volumes and values, the performance of listed securities and the DFM general index. The market performance in Q2 2009 reflects improved investor appetite and their confidence in the sound fundamentals of the national economy and publicly listed joint stock companies.’ ‘Undoubtedly, the continued improvement of quarterly revenues and profits of DFM ‘PJSC’ demonstrates the effectiveness of its business model and the success of strategic actions taken during the last few months, which aim at controlling cost and to coping with global circumstances. This also reflects the stable economic environment in general and restoring activity in several sectors, particularly real estate and banking. The effects of these developments were noticed in DFM during the second quarter. We are more optimistic about the outlook, and hopefully the market can acquire additional momentum to be able to record more positive results by year end,’ he added.

‘The second quarter of 2009, witnessed the launch of several different initiatives from DFM aimed at reinforcing market activities and encouraging companies to tap the financial markets for funding growth and expansion. Although the market saw no new listings in Q2 2009, compared to the sole listing of Drake and Scull International in March 2009, management is working restlessly to cooperate with potential partners in the private sector to lay the foundations to encourage companies to go public,’ Kazim said.

‘The unprecedented response of the private sector and investment banks to our ‘Guide to going public’ launched in June 2009, is a clear indication to the opportunities which we think will evolve during the next few months in light of the ongoing communication with companies interested to go public and list on DFM,’ Kazim concluded.