Outlook remains rosy for DFM

Shuaa Capital maintained its short-term and long-term outlook for Dubai Financial Market (DFM) saying the company's 2007 results came in line with the investment bank's estimates in terms of operating profit.

In January, the bourse posted a 77% rise in 2007 profit at 1.412 billion dirhams, beating its own forecast and Shuaa's estimate.

DFM also proposed a 10% cash dividend of nominal share value yielding a payout ratio of 57%, in line with the investment bank's estimate of a 60% payout.

"This verifies DFM's high cash generating business and the consecutive streaming of these funds to its parent company, namely Borse Dubai, to help support its acquisition plans," Shuaa said in a note to clients.

Borse Dubai and the Nasdaq Stock Market should close a $4.9 billion deal this month to buy Nordic and Baltic stock exchange operator OMX. Under the tie-up, Borse Dubai gets Nasdaq's 28% stake in the London Stock Exchange. (Reuters)

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