DFM second-quarter profit climbs to nearly $21 million on increase in new investors

Total revenue grew by 48.2 per cent annually during the period

DFM's institutional investors accounted for nearly 57 per cent of trading value in the first half of the year. Chris Whiteoak / The National

The Dubai Financial Market has reported a more than 113 per cent jump in its second-quarter net profit as the stock exchange attracted new investors in the April-June period.

Net profit for the quarter ending June 30 increased to more than Dh76.5 million ($20.9 million), the DFM said in a bourse filing on Thursday.

Total revenue grew by 48.2 per cent annually to Dh126.3 million in the three-month period.

Increase in earnings reflect the company’s “efforts and initiatives to make DFM a marketplace of choice for investors and issuers”, DFM chairman Helal Al Marri said.

The company’s expenses reached Dh49.7 million in the last quarter, compared with Dh49.3 million during the same period last year.

DFM's first-half net profit surged 77 per cent annually to Dh112.2 million, while revenue surged 31 per cent to Dh215.2 million in the January-June period.

Revenue in the six-month period included Dh128.6 million in operating income and Dh86.6 million in investment returns and other income, according to the statement.

In 2021, Dubai announced plans to list 10 state-owned companies and boost the size of the emirate's financial market to about Dh3 trillion.

The emirate also announced a Dh2 billion market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

In the first half of the year, DFM attracted 25,699 new investors, 74 per cent of whom were foreign investors. During the period, DFM’s trading value reached Dh46 billion and market capitalisation increased 12 per cent to Dh652 billion.

Institutional investors accounted for nearly 57 per cent of trading value in the first half of the year.

The DFM General Index also advanced by 14 per cent during the period.

Some of the key factors that contributed to the strong second quarter include the listing of a family-owned company Al Ansari Financial Services that was well received by the market, the DFM said.

Its London roadshow also attracted great interest from international investors.

Foreign investors accounted for 48 per cent of the trading value during the first half of the year, with net purchases amounting to Dh3.27 billion. Their share in market capitalisation reached 20 per cent by the end of June.

“DFM is well poised to achieve its strategic goals and strengthen its role as a global financial centre that meets the evolving needs of its valued clients and stakeholders,” said Hamad Ali, chief executive of DFM and Nasdaq Dubai.

In March, DFM and the Dubai Chamber of Commerce also launched a programme to help regional private businesses grow and list on the local bourse.