Dubai Financial Market Quarterly Loss Narrows as Revenue Rises
Dubai Financial Market PJSC (DFM), the only publicly traded Gulf Arab stock market, said its third-quarter loss narrowed after revenue advanced and costs dropped.
The loss for the three months ended Sept. 30 was 1.7 million dirhams ($462,837) after a loss of 9.3 million dirhams in the year-earlier period, the company said in an e-mailed statement today. Quarterly revenue rose to 36.8 million dirhams from 31.7 million dirhams in the same period of 2011 while expenses dropped 6.1 percent to 38.5 million dirhams.
Dubai’s benchmark DFM General Index (DFMGI) is the best performer in the Gulf Cooperation Council so far this year, with an advance of 20 percent compared with a gain of 3.5 percent for the region’s Bloomberg GCC 200 Index. (BGCC200) Trading value on Dubai’s bourse climbed 47 percent in the first nine months to 40.4 billion, the Dubai Financial Market said today. The figure improved after three brokerages started margin trading, Chairman Abdul Jalil Yousef Darwish said in the statement.
The exchange plans to allow short selling, liquidity providing, market making and share lending and borrowing as it seeks to boost liquidity, the company said.
“We are confident that Dubai Financial Market is well positioned for a new beginning given the various market infrastructure enhancements implemented over the last two years,” Darwish said.
Dubai Financial Market shares rose 2 percent, the most since Oct. 7, to 1.03 dirhams on Nov. 1. The stock has gained 23 percent this year after a 44 percent decline in 2011.
The United Arab Emirates, the second-biggest Arab economy, has three bourses, Nasdaq Dubai, Dubai Financial Market and Abu Dhabi Securities Exchange.
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