DFM's 2016 net profit almost flat

07/02/2017 06:04 AST

Dubai Financial Market, the region's only listed bourse, said on Monday its net profit for 2016 fell by a marginal 3 per cent.

Net profit for the year to December fell to Dh253.5 million for the year 2016, compared to Dh261 million in 2015.

Total revenues fell to Dh439.3 million in 2016 compared to Dh451 million in 2015. In the fourth quarter to December, the bourse's net profit increased 406 per cent to Dh78.5 million compared to Dh15.5 million in the last quarter of 2015.

Total revenues also jumped more than 85 per cent to be at Dh131.2 million. Despite the 12 per cent drop in trading value to Dh133 billion in 2016, due to some unfavourable circumstances related to oil prices and international markets' volatility, the DFM managed to contain the implications of these circumstances, the DFM said. The DFM General Index gained 12 per cent last year, and was the outperformers among other regional bourses.

"Additionally, DFM has maintained its attractiveness to foreign and institutional investments due to its world-class infrastructure and the lucrative opportunities it provides, as a proxy for the diversified and strong national economy," Eisa Kasim, chairman of the bourse said in a statement.

Foreign investments accounted for 45 per cent of trading value in 2016 with Dh306.5 million of net in-flows. On the other hand, institutional investments accounted for 30 per cent of trading value with Dh2.2 billion of net in-flows.

New instruments

The DFM implemented three direct deals in 2016 with a total value of Dh535 million. Furthermore, DFM's efforts to provide investors with new financial instruments have gain momentum as the market welcomed the listing of Afkar Capital's Exchange-Traded Fund (ETF) end of June in a first of its kind step. The market also recorded Dh527 million of trading in rights issues of five listed companies, which clearly indicates investors' momentous interest towards this new tool, which has been introduced as part of DFM's efforts to provide investors with new financial instruments.

DFM successfully organised two international investor's roadshows in London and New York during 2016 as part of its continuous efforts to link its listed companies with international investors. "Numerous international institutions have voiced their interest to further strengthen their presence on Dubai's capital markets amidst growing confidence in the national economy's outlook and its ability to maintain high growth," Kasim said.

The national economy is characterised with high level of resiliency to withstand global circumstances supported by numerous rapidly growing sectors, which play a major role in the diversification of economy.

Gulfnews