Higher trades boost DFM nine-month profits by 26%

Dubai: The Dubai Financial Market Company (PJSC) on Monday posted a 26 per cent rise in nine-month net profit, aided by higher value of trades made during the third quarter amid the COVID-19 pandemic.

“This performance clearly indicates DFM’s resiliency in containing international markets’ volatility due to the repercussions of unprecedented circumstances triggered by the COVID-19 pandemic,” said Essa Kazim, Chairman of the Dubai Financial Market Company.

The bourse operator posted a net profit of Dh120.1 million during the first nine months of the year ended September 30, compared to Dh95.5 million in the same period of 2019. Net profit in the third quarter increased 35 per cent to Dh41.1 million.

The rise in profit was aided by the value of trades on the bourse increasing by 28.3 per cent to about Dh51 billion, compared to last year. The benchmark index advanced for the second consecutive quarter by 10 per cent, following its 16 per cent advance during the second quarter.

“It also maintained its attractiveness to foreign investors with their market share reaching 51 per cent of trading activity and 18 per cent of the market capitalization at the end of September 2020,” Kazim added.

When it comes to buying appetite during the period, international investors were the net buyers of Dh190 million, at the end of the third quarter. Additionally, the DFM attracted 3,194 new investors during the nine months.

Meanwhile, total revenue amounted to Dh271 million during the nine months compared to Dh241.6 million during the corresponding period in 2019.