Dubai Financial Markets reports 21% growth in first half profit as it appoints new chief executive
The value of shares traded on the exchange in the six-month period was up 25% to Dh31bn
DFM company, the operator of the Dubai Financial Market, said net profit rose 21 per cent in the first half of the year as it benefitted from higher trading volumes during periods of market volatility.
Net profit for the six-month period rose 21 per cent to Dh78.9m, and revenue rose 11 per cent to Dh181.1m.
“During the first six months of 2020, the DFM’s trading value has exceeded Dh31 billion, a 25 per cent increase compared to the corresponding period of 2019,” the company’s chairman, Essa Kazim, said.
He also said the market’s performance in the second quarter indicated its resilience, as the DFM general index rebounded by 16 per cent, “restoring a considerable percentage of its previous decline”.
The DFM had dropped 36 per cent in the first three months of the year, but its gradual recovery meant it had mitigated the decline to 25 per cent at close on Monday. The company had been the only listed stock marketoperator in the Gulf until late last year when Boursa Kuwait completed its IPO.
Net profit for the second quarter was 20 per cent higher at Dh44.2m, with revenue increasing 8.5 per cent to Dh92.9m.
The company’s board members on Monday also approved the promotion of Hassan Al Serkal to chief executive. Mr Al Serkal had previously been chief operating officer and has been with the DFM since its inception in 2000.
“This step concludes the wide-ranging reorganisation process of the market’s structure over the past two years, which also included the establishment of independent companies for clearing and depository in line with best practices of exchange operators,” Mr Al Kazim said.
Published: July 27, 2020 08:14 PM