Dubai bourse Q2 profit up 33%

PROFITS BOOST: Dubai Financial Market has beaten forecasts with a 32.6% rise in second-quarter profit to $66.88mn. (Getty Images)

Dubai Financial Market Co (DFM) beat most forecasts with a 32.6 percent rise in second-quarter profit to 245.62 million dirhams ($66.88 million), its smallest quarterly profit in three quarters.

DFM, which gets the bulk of its revenues from trading-commission fees, said profit in the first half of the year surged 100 percent to 560 million dirhams from the same period in 2007, without giving quarterly data.

The Dubai bourse's second-quarter profit, which Reuters calculated from previous financial statements, topped four of five forecasts of analysts in a Reuters net profit survey last month, ranging from 198.55 million dirhams to 618.75 million dirhams.

The second-quarter profit fell 21.9 percent compared with the first quarter, when the exchange made 314.38 million dirhams.

During the three-month period, the Dubai index hit a three-month low on June 29, down 9 percent from a two-month peak hit on May 6.

Shares on the DFM fell nearly 4 percent in the second quarter and are down more than 20 percent this year. They closed at 4.95 dirhams on Thursday, compared with a Citigroup price target for the stock of 8 dirhams.

The exchange said first-half revenues rose 70 percent to 637 million dirhams, including 454 million dirhams of revenue from operations and 183 million dirhams from investments.

DFM made 185.21 million dirhams of net operating profit in the second quarter of 2007 and 314.38 million dirhams of net operating profit in the first quarter of this year. (Reuters)

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