Saturday, 3rd November 2012
Press Release DFM Company Net Profit soars 411% to AED 38.9 million during the first three quarters of 2012- Trading value in the first nine months surpass 2011 levels by 26%
- Abdul Jalil Yousef Darwish: The expansion of "Margin Trading" creates a new liquidity stream to further improve market activity
- Essa Abdul Fattah Kazim: DFM is actively implementing various measures
in preparation for the introduction of "Market Making", "Securities Lending
& Borrowing" and "Liquidity Providing"
Dubai, November 3rd 2012: Dubai Financial Market Company (PJSC) today announced its financial results for the first nine months of the year ending September 30th 2012, recording a net profit of AED 9.83 million, a 144% increase compared to the corresponding period in 2011. The Company's performance improved during the third quarter of 2012 with the quarterly net loss declining to AED 481 million compared to AED 389 Million in Q3 - 2011.
The Company recorded a total revenue of AED 41181 million at
the end of Q3-
2012 compared to AED 41184 million during the corresponding
period in 2011. The revenue comprised of AED 424 million of
operating income and AED 9181
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million of investment returns. The Company expenses reached
AED 44181 million compared to AED 49181 million recorded
during the first three quarters of 2011. During the third
quarter of 2012, the Company's revenue reached AED 918.
million compared to AED 9481 million, whilst expenses
amounted to AED 9.81 million in the same period compared to
AED 14 million in Q3- 2011.
It is noteworthy that the DFM trading value significantly
increased by 46.6% to reach AED 40.4 billion during the first
nine months of this year compared to AED
27.6 billion in the corresponding period of last year.
Furthermore, the trading
value at the end of Q3-2012 surpassed levels achieved during
the entire year of
2011 by 26%. Meanwhile, trading value decreased 9.9% to AED
8.1 billion in the third quarter of 2012 compared to AED 9.03
billion in the same period of 2011.
Abdul Jalil Yousef Darwish, Chairman of Dubai Financial
Market (PJSC) said: "Since the beginning of this year, the
DFM Company has relentlessly endeavored to create a thriving
and supportive environment with the aim to restore normal
market activity. For this purpose, we have accredited 3 new
brokerage firms for Margin Trading in 2012, compared to one
company to the previous year, raising the total number of
DFM-licensed brokerages which offer this service to their
clients, to 4. This is expected to leave a positive mark on
the exchange's
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performance, and ultimately on the Company's revenue in the
future. The total value of Margin Trading reached AED 99181
million since the introduction of this mechanism and we
believe that Margin Trading will gain momentum with the
accreditation of more brokerage firms who have already
applied. We are confident that DFM is well positioned for a
new beginning given the various market infrastructure
enhancements implemented over the last two years. Evidently,
the best indication of this is the significant improvement in
trading value and witnessing DFM as the best performing
regional exchange with its general index increasing 20% year
to date."
Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai
Financial Market (PJSC) said: "DFM is currently carrying out
a series of measures to prepare its systems and procedures
for the introduction of "Market Making" and three other
supportive mechanisms including; "Securities Lending &
Borrowing (SLB)", "Short Selling" and "Liquidity Providing"8
These measures include the introduction of an SLB system
whereby OTC SLB transactions will be settled by DFM. We are
also creating new trade types for Short Selling, Market
Making and Liquidity Providing to facilitate the monitoring,
reporting and settlement of such trades. Our plans also
include developing relevant new business rules, obtaining
regulatory
approvals, and communicating with the DFM market participants
to explain the
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new business model, to ultimately ensure the effective
introduction of the new trading mechanisms8"
-Ends-
26, 2000. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company. Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae
For further information, please contact:
Atef FathyVice President- Media & Public Relations
Dubai Financial Market
Tel: 04-3055334
Email: afathy@dfm.ae
www.dfm.ae
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