DFM second-quarter net profit more than doubles as trading values surge

Net profit for three months ending June 30 climbed to $9.8m

Total trading value on the DFM increased by 75 per cent during the first half of the year. AFP

Dubai Financial Market reported a 134 per cent annual increase in second-quarter net profit, driven by improved trading values and rising income.

Net profit attributable to the owners of the company for the three months ending June 30 climbed to Dh35.9 million ($9.8m), compared with Dh15.3m in the prior year period, the DFM said in a bourse statement on Thursday.

Total income during the period jumped more than 33 per cent on an annual basis to Dh85.98m.

Trading values on the DFM increased by 75 per cent during the first half of the year to Dh49.4 billion, while the total market capitalisation of listed securities increased to Dh527bn, compared with Dh411bn at the end of 2021, the exchange said.

Net profit for the first six months of the year increased more than 63 per cent yearly to Dh63.4m.

“The DFM has witnessed a positive performance driven by the increasing interest from various market participants and the deep confidence in its prospects in light of the accelerating steps to implement the Dubai’s financial markets development strategy,” said Helal Al Marri, chairman of DFM Company.

"DFM maintained its attractiveness to international investors who accounted for 47 per cent of its trading value during the first half with net purchases of Dh2.6bn and their ownership reached to 19.8 per cent of the total market capitalisation by the end of June," he added.

DFM, which attracted 70,432 new investors during the first half of this year, onboarded 426 new institutional investors during the first half, including 303 foreign institutions.

“The DFM is reinforcing its efforts to attract more foreign investments through its commitment to regularly organising global investor roadshows," Mr Al Marri said.

Last year, Dubai announced plans to list 10 state-owned companies as part of its strategy to double the size of its capital market to Dh3 trillion and attract foreign investment.

The emirate also unveiled plans to set up a Dh2bn market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

The Dubai Electricity and Water Authority was the first government entity to list on the DFM in April, raising Dh22.41bn from its initial public offering.

The utility's IPO was the largest public float in the Middle East and Europe since Saudi Aramco went public in 2019.

Union Coop also became the first UAE retail co-operative to list its shares on the DFM earlier this month.

Earlier this month, Dubai's Tecom Group, the operator of business districts that are home to more than 7,800 companies, also raised Dh1.7bn from its IPO on the DFM.

"During the first half, the DFM welcomed the listing of Dewa, the largest initial public offering in the UAE financial markets’ history. Additionally, our product diversification strategy gained further momentum by launching trading of Oman Crude Oil Futures as well as new equity futures contracts," Mr Al Marri said.

"The first half also witnessed the accomplishment of key initiatives to develop the regulatory framework through the introduction of the listing and trading rules of co-operatives and special purpose acquisition companies [Spacs], which strengthens DFM's ability to attract more listings and diversify investment opportunities.”