Oct. 26 (Bloomberg) -- Dubai Financial Market PJSC, the only publicly traded Gulf Arab stock market, said its third-quarter loss tripled after trading values and volumes tumbled.
The net loss for the period increased to 9.28 million dirhams ($2.5 million) from 2.95 million dirhams a year earlier. Revenue in the first nine months sank 29 percent to 145.1 million dirhams, the exchange said in an e-mailed statement today.
“The constant drop in trading values overshadowed the company’s revenue, as trading value decreased by 52.2% during the first three quarters,” according to the statement.
Third-quarter trading volumes fell to a daily average of about 69 million shares from about 88 million a year earlier, according to data on Bloomberg, as global debt concerns damped investor sentiment. This year’s trading volumes slid to a six-year low. Dubai’s benchmark index has slumped 84 percent from a record in 2005 to 1,353.84 at the close today.
MSCI Inc., whose stock indexes are tracked by investors with about $3 trillion in assets, in June delayed a decision on whether to upgrade the United Arab Emirates to emerging-market status from frontier market until December. Dubai, the Persian Gulf business hub, is one of seven emirates in the U.A.E. federation.
Dubai Financial Market’s shares fell 1 percent to close at 96.9 fils in Dubai today, valuing the company at 7.75 billion dirhams. The stock has lost 36 percent this year compared with a 17 percent decline in the benchmark Dubai Financial Market General Index.
The U.A.E., the second-biggest Arab economy, has three bourses; Nasdaq Dubai, Dubai Financial Market and Abu Dhabi Securities Exchange.
To contact the reporter on this story: Zahra Hankir in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com