Dubai: Dubai Financial Market said on Sunday its net profit for nine months to September fell 29 per cent to Dh175 million as revenues fell.
Total revenues fell 19 per cent to Dh308.1 million during the nine months period ended September 30, 2016, compared to Dh381.8 million during the corresponding period of 2015. The revenue comprised Dh248.6 million of operating income and Dh59.5 million of investment returns.
Net profit in the third quarter of 2016 reached Dh35.4 million, compared to Dh45.4 million in the third quarter of 2015.
“During the first nine months of 2016, trading activity slowed down due to the unfavourable circumstances associated with the global economy, which are completely isolated from our strong economy. These circumstances have affected the international markets in general,” Eisa Kazim, Chairman of Dubai Financial Market (PJSC), said in a statement.
The total value of trading on DFM decreased by 31 per cent to Dh91.2 billion during the first nine months of this year compared to Dh132 billion in the same period last year.
The daily average of trading value fell 30 per cent to Dh488 million compared to Dh698.4 million during the same period of 2015. During the third quarter of this year, trading value decreased 24 per cent to Dh21.7 billion compared to Dh28.5 billion in the same period of 2015. Trading commission is the main revenue stream for DFM Company.
“DFM Company’s revenue and net profit have decreased during the first three quarters of the year; nevertheless, DFM has maintained its attractiveness to various categories of investors in a clear indication of their growing confidence in its lucrative and diversified investment opportunities that reflects the strong and sustainable performance of the national economy,” Kazim said.
The DFM General Index has been the best performing among stock markets in the GCC region and came fourth among the leading indices globally, advancing 10.3 per cent during the first nine months of the year. Additionally, institutional investors have increased their participation on the market from 25.3 per cent of the trading value during the first nine months of 2015 to 28.3 per cent during the same period of 2016, with a net buying of Dh1.5 billion.
Meanwhile, foreign investors’ ownership on the market has increased from 17 per cent at the end of September 2015 to 22.2 per cent at the end of September 2016, in a strong indication of their confidence in the market and its world class infrastructure and regulations.
It is noteworthy that the DFM successfully attracted 2,627 new investors during the first nine months of 2016 including 418 institutions, lifting the total number of DFM-registered investors to approximately 839,000.