Dubai Financial Market suffers Dh2.95m net loss

Dubai The Dubai Financial Market (DFM) Company yesterday reported a Dh2.95 million net loss in the third quarter of 2010 due to the inclusion of Nasdaq Dubai's financial results.

"When excluding the above mentioned results, DFM's net profit in the same quarter stood at Dh3.8 million," the company that runs Dubai's stock market said in a statement.

Chairman Abdul Jalil Yousuf Darwish said: "Over the last few months, DFM has seen numerous constructive developments which have laid a strong foundation to implement the future growth strategy.

"In May 2010, the company accomplished the payment of two thirds of Nasdaq Dubai, followed in July by the outsourcing of the latter's operations to DFM. Certainly, this plays a pivotal role in achieving Dubai Government's vision to create a dynamic capital markets hub.

"A close glance at the two exchange's performance since the outsourcing date will easily show a considerable improvement in market activity thus reaffirming that DFM is on the right path".

The company, meanwhile reported a net profit of Dh77.8 million in the first nine months of 2010 compared to Dh258 million in the corresponding period 2009. Total revenue reached Dh205 million in the first three quarters of 2010, comprising operational, investment and other income.

Eisa Kazim, Managing Director and CEO, said: "Despite the 54 per cent fall in DFM's trading value during the first three quarters of 2010 compared to the corresponding period in 2009 which overshadowed the company's revenue and profit, we continue to believe that this as a passing circumstance that does not symbolise our market.

"We have seen a gradual improvement in investors' sentiment and a renewed attention from foreign investors triggered by some encouraging developments such as the recent inclusion of UAE markets in the FTSE Global Index."

Additionally, the clearest indication of the positive impact of these developments is the 15.2 per cent jump of the DFM General Index during the third quarter, places DFM amongst the best performing leading financial markets globally.

"Furthermore, the consolidation between DFM and Nasdaq Dubai, which is nearly accomplished, will further amplify operational and spending efficiency and ignite a surge of activity across the two exchanges," Kazim said.

Renewed attention